Uzbek Court Rules Against Carlsberg Subsidiary

• Category: Uzbekistan
TASHKENT (12.uz) – An Uzbek court ruled against a subsidiary Danish beer maker Carlsberg Group on Wednesday, upholding an earlier court decision stating the firm has failed to pay adequate taxes on revenue and has produced beer illegally.
Photo of Carlsberg brewery in Uzbekistan

Carlsberg Uzbekistan employs over 400 employees. It commissioned its modern brewery, with initial annual capacity of 1.0 million hectolitres, in Tashkent during June 2007. This capacity was increased in late 2009 up to 1.3 million hectolitres. Their first local brand, SARBAST® was first delivered to retail outlets in July 2007.
Carlsberg Uzbekistan, which is 100% owned by the Carlsberg Group, has developed a country-wide network of privately owned distributors that ensures the maximum product exposure at a standardized level of price.

In 2009, Carlsberg purchased Sarbart Plus, a joint venture between Baltic Brewing Company and the Uzbek government. It then invested $100 million into the venture.

Yet, the Uzbek government claims the Carlsberg subsidiary, Carlsberg Uzbekistan, owes $4.6 million in taxes to the government from unreported revenue, the Uzbek. Lower courts also claims that Carlsberg illegally produced 1.6 million litres of beer from 2008-2010.

Production at the Carlsberg Uzbekistan plant has been suspended since March and employees were asked to take an unpaid leave from March until last month.

The company is in early-stage negotiations to sell its subsidiary, the 12.uz reported.