Carlsberg CEO: Lessen the beer tax don't let Bulgaria get the new factory
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Oluşturulma Tarihi: Nisan 11, 2005 12:57
The five time increase in the Personal Consumption Tax (OTV) placed on beer in the last two years is having a significant influence on the beer sector. Following immediately on the heels of the %50 increase in the OTV in February, the largest Danish investor in Turkey, Carlsberg, announced plans to shelve further investment in the country for the time being.
Since February, beer producers including representatives from Carlsberg and others have been involved in talks with the government on this issue.
Barry Marshall, CEO of Carlsberg, says that Carlsberg had plans to turn Turkey into their production center in the near future. Marshall warned that "...if there are no positive developments with the OTV by the end of this year, Carlsberg may shift plans for a new factory aimed at production for sales in the Middle East, Central Asia and North Africa to either Bulgaria or Italy."
Not being able to meet growing demands for beer export from Turkey, Carlsberg decided last year to create a 250 million dollar production center in Gaziantep, Marshall said, noting also that they had made about a 90 million dollar marketing investment in Turkey to make it a production center. Marshall discussed the effect of the government's tax politics and Carlsberg's expectations and plans for the future in Turkey:
Hurriyet- How has the increase in the OTV affected your sector?
Marshall- The %50 increase in February in the OTV was not expected, and it was really very high. It affected the market terribly. In the last year, this OTV has been raised five times. This in turn increases the prices on our products very much. In fact, we can't even reflect how much the OTV has been raised in our prices, because if we did, our prices would become out of range, and in a very short while, our beer would disappear from the market. With the price increases, demand for our beer has dropped, and our profits have too, and this has left us in a difficult situation.
Hurriyet- How would you compare the OTV in Turkey to other European countries?
Marshall- The highest OTV in Europe is in Turkey.
Hurriyet- And how would you compare the retail price of beer in Turkey with other countries?
Marshall- The shelf price of beer in Turkey is %36 tax. Turkey is in third place for beer prices in Europe. But if you look at the per capita income level of Turkey, this country is far behind the European countries....So in terms of what they have in their wallets, Turks are paying more in Turkey for beer than in other European countries.
Hurriyet- What is the level of your investment in Turkey?
Marshall- We are the largest Danish investment firm in Turkey. We have invested 225 million dollars in the country in the last two years.
Hurriyet- What direction will your investments take after this?
Marshall- We will not pull our investments out of Turkey. But we have put the break on some of our investments, shelved them for the time being. We will wait until there is a fairer tax politics that emerges to continue our investments.
Barry Marshall, CEO of Carlsberg, says that Carlsberg had plans to turn Turkey into their production center in the near future. Marshall warned that "...if there are no positive developments with the OTV by the end of this year, Carlsberg may shift plans for a new factory aimed at production for sales in the Middle East, Central Asia and North Africa to either Bulgaria or Italy."
Not being able to meet growing demands for beer export from Turkey, Carlsberg decided last year to create a 250 million dollar production center in Gaziantep, Marshall said, noting also that they had made about a 90 million dollar marketing investment in Turkey to make it a production center. Marshall discussed the effect of the government's tax politics and Carlsberg's expectations and plans for the future in Turkey:
Hurriyet- How has the increase in the OTV affected your sector?
Marshall- The %50 increase in February in the OTV was not expected, and it was really very high. It affected the market terribly. In the last year, this OTV has been raised five times. This in turn increases the prices on our products very much. In fact, we can't even reflect how much the OTV has been raised in our prices, because if we did, our prices would become out of range, and in a very short while, our beer would disappear from the market. With the price increases, demand for our beer has dropped, and our profits have too, and this has left us in a difficult situation.
Hurriyet- How would you compare the OTV in Turkey to other European countries?
Marshall- The highest OTV in Europe is in Turkey.
Hurriyet- And how would you compare the retail price of beer in Turkey with other countries?
Marshall- The shelf price of beer in Turkey is %36 tax. Turkey is in third place for beer prices in Europe. But if you look at the per capita income level of Turkey, this country is far behind the European countries....So in terms of what they have in their wallets, Turks are paying more in Turkey for beer than in other European countries.
Hurriyet- What is the level of your investment in Turkey?
Marshall- We are the largest Danish investment firm in Turkey. We have invested 225 million dollars in the country in the last two years.
Hurriyet- What direction will your investments take after this?
Marshall- We will not pull our investments out of Turkey. But we have put the break on some of our investments, shelved them for the time being. We will wait until there is a fairer tax politics that emerges to continue our investments.