just On Call - Carlsberg stays bullish on China despite slowdown
Carlsberg is still hopeful of the opportunity China offers
Carlsberg remains confident on its long-term prospects in China despite seeing a slowdown in growth in the country this year.
The Danish brewer today (21 August) reported flat volume growth in its second-quarter in China, while half-year volumes slowed to a 5% rise organically. “We are seeing a slight slowdown in the Chinese market,” Carlsberg's president & CEO Jorgen Buhl Rasmussen said to analysts on a conference call.
“Part of that would be weather and also a little less underlying growth, he said. “But in places like China and emerging markets, you do see variations quarter on quarter.
He added: “We are still confident about future growth in this market as overall consumption is still quite low, not least in the regions we are in.”
Carlsberg earns around 11% of its group profits from Asia.
Earlier this year, an analyst predicted that the 'Big Four' global brewers are likley to be engaged in a “bruising slugfest” in China for some years, as margins remain low.
Meawhile, Carlsberg's performance in Russia also came under the spotlight from analysts today. Rasmussen admitted that the closure of around half of the country's dedicated beer kiosks had been “more disruptive” than the company had anticipated.
“The biggest factor we did not get right is consumers getting used to not being able to buy beer from just below where they lived. It takes time to adapt to that,” said the CEO.
However, the group said some of the volume sold from the kiosk has been picked up by hypermarkets, minmarkets, traditional stores and the on-trade. Russia's overall beer market declined by around 7% in this year's first half, Carlsberg estimated. The group's own H1 volumes in Eastern Europe, including Ukraine, rose by 3% to 21.9m hectolitres, while sales by value dipped by 1% to DKK9.1bn.
On Somersby, the company's cider brand launched last year, Rasmussen said that the brand is now in 35 markets and “doing extremely well”, with 85% year-on-year volume growth to date.
In this, the final part of just-drinks' management briefing for January, Euromonitor takes a look at what the year ahead has in store for the global brewing industry....
Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by Globa...
The world’s fourth largest brewer, Carlsberg is working to reduce its reliance on struggling European markets. This profile considers the company’s decision to focus on emerging Asian markets and anal...
Here, courtesy of analysts at Nomura, is a list of the purchases made in the global brewing industry between 1999 and last year, along with the EBITDA multiples paid....
Alcoholic Drinks in Europe industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). Th...
- The End of the Road for International Beer Brands?
- Comment - Another One Bites Bacardi's Dust
- Allegro: The shape of things to come at Pernod?
- Pernod Ricard's FY Performance by Region, Brand
- US craft vodka puts squeeze on Pernod's Absolut
- Mast-Jägermeister targets UK off-trade boost
- Pernod bemoans tough FY as sales, profits drop
- ASA bans Jägermeister TV ad
- Bacardi announces CFO switch
- SABMiller exec to become CFO at Beam Suntory