COPENHAGEN (Reuters: Carlsberg, OTC:), said that it saw a drop of 3-4% in beer sales in Poland in March. The decline continued in April. It highlights the difficulties facing brewers in a decreasing market where consumers are switching to wines and spirits.

Cees’t Hart, chief executive of the Danish Brewer’s said that the trend was being exacerbated by inflation, an extra excise tax and the refugee crisis caused by Russia’s invasion in February.

In less than two months almost 3 million Ukrainians have fled to Poland, and Warsaw’s population has grown by 15% in the past year since Moscow launched a “special military operations” in Ukraine.

Hart explained that many big parties had to be cancelled. Hart also said that people are affected by the refugee crisis because their minds don’t want to celebrate life or share a beer.

The level of consumer confidence in the Polish has plummeted since the Ukraine crisis. In March and April, it was at its lowest point for 20 years.

Last year’s beer consumption in Poland was 102 litres. This is the most of all Carlsberg main markets. With a share of about 20% in Poland’s brewing market, Carlsberg is the third largest brewer.