Carlsberg is set to gain PepsiCo distribution and bottling rights in Northern Europe, with the change coming as Royal Unibrew’s current licencing contract in the region approaches expiry.
Under the new agreement, the Danish brewer will take over the production, sale and distribution of the PepsiCo portfolio in Denmark, Finland, Latvia, Estonia and Lithuania from 1 January 2029.
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The Tuborg brand owner has been PepsiCo’s bottler in Sweden and Norway for more than 25 years, and said the latest deal expands its “strategic partnership” with the soft drinks group to all Nordic markets and the Baltics.
Carlsberg Group CEO Jacob Aarup-Andersen said: “We’re very pleased that we’ll become the sole PepsiCo bottler in the Nordics and the Baltics. This is an exciting move, solidifying our longstanding strategic partnership with PepsiCo.
“The growth prospects and value creation opportunities from a business model which combines the Carlsberg and PepsiCo beverage portfolios are truly significant.”
Eugene Willemsen, CEO of PepsiCo’s International Beverages unit, said: “We’re pleased to further strengthen our collaboration with Carlsberg by adding five markets in January 2029. The expanded Carlsberg partnership announced today will provide exciting new growth opportunities for both parties.”
In a separate statement, Royal Unibrew said its licence agreements with PepsiCo for Denmark, including German border trade, Finland and the Baltic states will end upon expiry at the end of 2028.
The company added that its tie-up with PepsiCo in Belgium, the Netherlands, and Luxembourg will continue beyond 2028 in line with existing contracts.
“Royal Unibrew would have welcomed the opportunity to continue the partnership; however, it has not been possible to reach an agreement,” the statement added.
The PepsiCo beverage business currently accounts for approximately 13% of Royal Unibrew’s net revenue. The company said it expected loss of net revenue would bepact “partly compensated for by accelerated growth in our own brands.
“While ending the partnership was not our preferred outcome, the contract expiry in 2028 will remove a number of structural constraints. This gives us flexibility to further accelerate the growth of our own brands and to explore new partnership opportunities,” said Lars Jensen, CEO of Royal Unibrew.
“Our own brands – with Faxe Kondi, Jaffa, and Novelle as strong examples – have consistently outperformed the soft drinks market in recent years and are expected to build further momentum. Backed by our well established multi-beverage model, our growth category framework, and our strong customer relationships, we have confidence in our ability to secure long-term growth.”
Following the new agreement, Carlsberg will have bottling appointments with PepsiCo in 14 markets across Europe, Central Asia and South-East Asia, including the UK and Ireland.
Carlsberg also noted that current bottling agreements it has in place with The Coca-Cola Company for Denmark and Finland will run until expiry on 31 December 2028.
