Danish brewing force, Carlsberg A/S, one of the main sponsors of Euro 2004, may see production for its home market hit by a strike as the start of the tournament approaches. About 230 employees at the company’s Fredericia plant in Jutland, western Denmark, have been on strike over pay demands since June 3. The union at the site wants a 5% wage increase while Carlsberg is offering 3.2%.

The Fredericia plant represents 60% of Carlsberg products for the company's home market. With Denmark participating in the football tournament, which begins this Saturday, Carlsberg risks being unable to satisfy demand for beer in the country.

Beer produced at Carlsberg's other plant in Copenhagen is not able to make up the shortfall because distribution workers have said that they will not break the strike. A Danish labour court has ruled the strike illegal and said it would fine the union.

Meanwhile Carlsberg announced it expects sales to soar on the back of this month’s Euro 2004 football tournament. The Danish company’s president and CEO, Nils Smedegaard Andersen, predicted in the Danish press that sales should rise by over DKK100m (US$16.6m) in the coming weeks. The tournament runs for a month from this Saturday. Carlsberg expects a rise in sales of around 50% in the second quarter of 2004. Andersen also expects the Carlsberg brand to grow by 10% in Q2 2004.

As a main sponsor of the tournament, Carlsberg has an annual budget for brand building and maintenance of DKK1 billion ($165.8m). A large part of the company’s advertising and marketing budget has been given over to the tournament.

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