DENMARK: Carlsberg announces $100m joint venture in Asia
The Danish company Carlsberg has signed an agreement with the Asian Chang Beverage Company to form Carlsberg Asia Ltd, a 50-50 joint venture that will administrate and develop the companies' marketing and brewing activities in the Asian region. The brewer hopes the new joint venture will provide a platform for further growth of the Carlsberg brand and "improve earnings and cash flow in a fast expanding market".
Carlsberg Asia will have a pro-forma net turnover of approximately $770 million in the first year of operation, Carlsberg said. The pro-forma profits of the joint venture after tax are expected to be approximately $100m in the year 2001.
Carlsberg Asia will, through its own breweries and licensed operations, brew 17m hectolitres of beer in its first year of operation. Carlsberg beer is expected to represent 2m hl of this volume.
The new company will be established on January 1, 2001 with the head office in Singapore. Carlsberg will contribute all of its Asian interests (both shareholdings and licensed activities) while Chang Beverage Company will contribute its 49% interest in Carlsberg Brewery (Thailand) Co. Ltd.
Chang Beverage Company, which is headquartered in Singapore, is an investor in breweries and distilleries in Asia.
Carlsberg's new partners include the leading Thai liquor producer, Khun Charoen Sirivadhanabhakdi. Khun Charoen controls one of the world's biggest distillery groups with annual sales of 100 million cases of liquor products. The combined turnover of Khun Charoen's liquor and brewery goods is close to USD 2 billion.
The nominal share capital of Carlsberg Asia will be USD400 million. It is the intention of Carlsberg and Chang Beverage Company to float Carlsberg Asia on a major stock exchange at an "opportune time", which the company said I sthought to be three to four years.
In connection with the establishment of the new company, Carlsberg will sell its 10% interest in the Thai breweries for $147m.
Under the terms of the joint venture, Carlsberg will focus on developing its brands in the dynamic Asian market through a fully-controlled sales and distribution network covering the entire region.
Carlsberg Asia, together with its partners, plans to build up a new and dynamic brewery and distillery group producing and selling an exclusive range of products, including its Thai partners' best selling Thai beer, Beer Chang, throughout Asia.
"Carlsberg has a long tradition of involvement in the region," said Michael C. Iuul, Carlsberg group managing director. "Historically, there have been only a few Asian markets with significant beer consumption. But today, the situation is changing. Asia is the fastest growing market for beer in the world. Carlsberg Asia will seriously strengthen our presence in the region."
Carlsberg Asia's two biggest markets will be Thailand and South Korea, which together will represent 85% of the expected volume brewed.
Carlsberg has finally hooked up with a state-owned Vietnamese brewer....
Carlsberg has entered into negotiations with the IBM Group regarding a possible outsourcing of the Danish brewer's IT services in Europe....
Carlsberg's rating has been lowered following its disappointing Q1 figures earlier this week....
Carlsberg said today that global beer volume showed a 20% increase in the first quarter of the year driven by strong organic growth in BBH as well as a considerable contribution from acquisitions, inc...
Carlsberg has appointed a managing director for its Chinese operations....
Carlsberg has increased its ownership in Carlsberg Brewery Malaysia Berhad from 49.66% to 51%. The investment amounts to approximately US$6m....
Dutch brewer Heineken is rumored to have released a self-chilling beer can....
The Bosnian government has put a majority stake in the country's brewery Banjalucka Pivara up for sale. Previous efforts to privatise the brewer have failed....
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Does alcohol accelerate the onset of dementia?
- Cognac is back - is Remy Cointreau ready?
- Soft drinks is losing the recycling game
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Pernod Ricard posts solid YTD sales jump - results
- Pernod Ricard YTD fiscal-2017 sales performance
- Cognac needs innovation at bottom end - Pernod
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Flavoured Powder Drinks in 2017: Confronting an Ageing World