Denmark: Carlsberg downgraded to sell on Russia’s proposed beer tax

Danish brewer Carlsberg was downgraded to sell from hold by Deutsche Bank analysts, who cited risks of beer tax and alcohol regulation in Russia, MarketWatch reported on October, 2.

"Russia seems to be gearing up for a battle against alcohol, a major cause of relatively low life expectancy and a declining population," the analysts wrote in a note to clients dated October, 1.

"There are many uncertainties, so it is not possible at this stage to come to a firm view on what will happen to earnings if the more severe proposed measures are implemented," the note reads.

In the worst case scenario, there could be a significant decline in beer volumes in the next few years and a severe reduction in the industry's ability to take price increases, the analysts said.

02 October, 2009