Russia: Carlsberg CEO criticises intended ban on plastic bottles

Russia risks deterring foreign investors in all industries if it passes a proposed ban on plastic bottles, Carlsberg’s chief executive has warned.

Half of Carlsberg’s beer sales in Russia, its biggest market, are in plastic bottles and Jørgen Buhl Rasmussen, head of the Danish brewer, said a ban would make no sense, Food & Beverage reported on September, 13.

“I would be surprised if the PET [plastic bottle] ban would come into force. There is no logic behind it. It would really be an issue for people investing in Russia and it would make people in other categories a little nervous,” Mr Rasmussen said.

Carlsberg has suffered from regulatory problems in Russia before. Sales at Baltika, the biggest beer brand in Europe which it has just finished acquiring fully, dropped after the Russian government unexpectedly tripled beer taxes to help combat alcoholism two years ago and an advertising ban on television, radio, billboards and the internet will soon come into force.

The Danish group parachuted in Isaac Sheps, who had turned around Carlsberg in the UK, to help stop the rot in Russia where Baltika recorded four successive quarters of declining market share.

The ban was first proposed more than a year ago because of claims – disputed by companies and scientists – that carcinogens from the plastic bottles could leak into drinks. Mr Sheps said that if it did take place it would be phased in over a long period, allowing the brewer to shift sales into cans or glass bottles.

14 September, 2012