Carlsberg latest brand to hit the buffers in Russia

THIS SHOULD BE a good week for Danish brewer Carlsberg as it announced its status as official beer partner to Arsenal Football Club in a deal likely to be worth around £10m. The deal also gives Carlsberg exclusive global marketing rights. The company hopes that its association with the club will enable it to connect with millions of fans around the world. But it will take more than a few goals from AFC striker Andrei Arshavin to help its Russian beer sales. Russia accounts for around 40% of Carlsberg’s sales  and the company has invested over $12bn since the market opened in the '90s. However, volumes  have been hit by the Kremlin tripling tax on beer in an attempt to get a grip on alcoholism. Carlsberg’s share price tumbled 17% on the release of a profits warning but its CEO remained bullish about the long term encouraging authorities to switch their focus to Vodka.