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15.12.2010 Carlsberg to expand Russian, Asian reach

Carlsberg is to use innovation and more sophisticated consumer insight in a bid to establish a stronger footprint in its target markets of Russia and Asia. In an interview with the Wall Street Journal, Jørgen Buhl Rasmussen, ceo and president at the world's fourth-largest brewer, said the brand's heritage will continue to help it grow in both regions. Expansion will be fuelled by a campaign of strategically-timed acquisition.

Two years ago, Carlsberg teamed up with its Dutch rival, Heineken, to complete the takeover of the UK's Scottish & Newcastle PLC. The S&N deal, which saw Carlsberg become a global player with exposure to the enormous Russian market, has resulted in its Baltika Brewery division accounting for some 45% of the company's overall revenue today. But the global economic slowdown of recent years has hit the firm hard, with Russian sales falling by 10% in 2009. Moreover, a further drop of between 10% to 13% is expected for 2010. Despite this sales trend, and the tripling of beer excise tax in Russia at the beginning of this year, Buhl Rasmussen said that emerging markets have enormous growth potential.

The other big growth opportunity for the firm is Asia. With major interests in China, India, Malaysia and Vietnam already bearing fruit, Buhl Rasmussen said that future growth will inevitably be linked to these key territories. "You are probably looking at somewhere between 60% to 80% of global volume growth coming from Asia and a big part of that will come from China," he added.

B.L. 15.12.2010