The world’s fourth biggest brewer, Carlsberg's level of sponsorship of UEFA Euro 2012 European Championships this summer in a bid to woo sports fans, has hurt the companies first-quarter results putting at risk the level of future deals.
A slump in sales in Russia, where Carlsberg owns 40% of the beer market has also been blammed.
"Our bottom line fell as a result of two factors: one being stock building in Russia in the fourth quarter, which led to significant destocking in the first quarter; the other was an increase in marketing efforts in Russia and connected to the European Championship," said CEO Joergen Buhl Rasmussen, in the Wall Street Journal.
The 165 year old brewer still expects to hit all of its targets this year as reported in the Journal but in the first quarter recorded a net loss of 76 million Danish kroner ($13.3 million). Sales and distribution expenses went up 347 million kroner as well to 4.35 billion kroner on the quarter.
As a major contributor to the football sponsorship market the beer market success is of vital importance especially in the UK with revuenue from TV predicted to fall.