News

EXCLUSIVE - RUSSIA: Africa, LatAm not for us - Carlsberg CEO

Most popular

e-commerce's watershed moment - former Amazon exec

Campari Group Performance Trends 2015-2019 - data

Could bulk beer shipping be a COVID-19 legacy?

The just-drinks analyst returns

Carlsberg, Marston's are winners, who are losers?

MORE

The head of Carlsberg has said the group is not looking to raise its geographical profile by moving into Africa or Latin America.

//i4.aroq.com/1/carlsberg_ceo-j._buhl_rasmussen_31_0.jpg

The brewer is primarily present in three regions; North & Western Europe; Eastern Europe & Russia, and Asia. With 49% of EBIT coming from Western Europe, 39% from Eastern Europe and 12% from Asia, Carlsberg is reliant on one stagnant market and one volatile market.

Speaking at the company's Capital Markets Day in Russia earlier today (13 September), CEO Joergen Buhl Rasmussen said he feels comfortable with the firm's current footprint and has no plans to branch out into Africa or LatAm.

“I think we have a good split,” he said. “Eastern Europe is a growth region - maybe not as fast a growing region as you could expect in Asia or Africa. But, I think it can deliver a lot to the Carlsberg business. Western Europe is a very stable but non-growing environment. We have to look for efficiencies here and improve our business model all the time.”

Adding Asia to the mix means that around 60% of Carlsberg's business is “in some kind of growing regions”, he said. “Asia will grow in importance. Our organic business will grow and there will be acquisitions.”

Turning to Africa, however, Buhl Rasmussen said he has no plans to take the brewer into the region. “Being in Africa in one way would be nice,” he continued. “Of course, Africa can offer a lot of growth, but it also offers risk and volatility.

“I don't think we need to go into Africa or Latin America to create the ideal profile for Carlsberg,” he continued.

“You can't get it all – you cannot get a lot of predictability and then ask us to go into fast-growing regions like Africa, where you get risk.”

The likes of Diageo, Heineken and SABMiller are targetting Africa for future growth in beer. Back in May, last year, the CEO of Heineken, Jean-François van Boxmeer, told just-drinks that "what Brazil is for Anheuser-Busch InBev, Africa is for Heineken".


Related Content

"The consolidation of the spirits industry is not over" - just-drinks speaks to Pernod Ricard's CEO ...

"The door is open" for guidance upgrades - Carlsberg H1 2019 - Analysis...

Anheuser-Busch InBev CEO Carlos Brito defends South Africa weakness

Anheuser-Busch InBev CEO Carlos Brito defends South Africa weakness...

"Africa is Asia in 15 to 20 years from today" - just-drinks speaks to Pernod Ricard CEO Alex Ricard...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?