E-Malt.com News article: Finland: Beer sales decline by 3.9% in Q1

In the first quarter of 2011, a total of 163.8 million litres of beer, ciders, long drinks, soft drinks and mineral waters were sold in Finland, the Federation of the Brewing and Soft Drinks Industry reported on April, 28.

Total sales decreased by 4.5 million litres, down 2.7 per cent on the January-March period of last year. The figures are based on sales statistics compiled by members of the Federation of the Brewing and Soft Drinks Industry.

By the end of March, members of the Federation of the Brewing and Soft Drinks Industry had sold a total of 83.5 million litres of beer, down 3.4 million litres or 3.9 per cent on the previous year.

The Federation of the Brewing and Soft Drinks Industry reminds that the markets of the brewing industry are becoming ever more challenging. For instance, the industry is beset by constantly rising costs. The costs of companies in the food and drink industry rose by 5.2 per cent on average last year. Further increases in energy costs, raw material costs and other material costs are expected this year.

The changing markets and soaring costs weaken the competitiveness of the Finnish brewing industry. The Federation of the Brewing and Soft Drinks Industry is highly concerned that new tax hikes are being proposed in this market situation. “Finland already has the highest beer tax in the European Union. It is almost five times as high as the Estonian beer tax. As a result of the tax increases, travellers’ private imports of alcoholic beverages have grown. There’s a great risk that each new tax hike will increase the volume of private imports,” says Elina Ussa, Managing Director of the Federation of the Brewing and Soft Drinks Industry.

“Pressures from different quarters have put the brewing industry in a tight spot. If profitability declines too low, even in spite of efficiency-boosting measures, Finnish companies will be left in a weaker position to successfully compete against foreign brands. There is no question that we must refrain from imposing new restrictions and tax hikes on the Finnish brewing industry,” says Ussa.


04 May, 2011