News

DENMARK: Carlsberg boosted by payment terms change

Most popular

Consumers need help in making healthier choices

Pernod is buying Malfy for the flavour - comment

just-drinks interview - Monkey 47

Can 'community commerce' solve DTC woes?

Wine in 2021 - just-drinks predicts

MORE

A change in supplier payment terms earlier this year helped to boost Carlsberg's cash flow in the first half of 2009, but has drawn criticism in the UK.

Denmark-based Carlsberg confirmed to just-drinks today (14 August) that it standardised its supplier payment terms in the spring of 2009. 

"The new terms mean that we pay our suppliers after the end of the current month plus two months and two days," said a spokesperson for the brewer.

Carlsberg's changes follow those made by others in the beer sector, the spokesperson said, and were new terms were introduced to "increase our working capital management".

The new terms contributed to a 170% rise in group cashflow in the first six months of 2009, compared to the same period last year, the spokesperson said.

Carlsberg said in its half-year results statement this month that the group focused on efficiency savings during the six months, but specific details of these efficiency measures were not given at the time.

However, the brewer has drawn criticism from some in the UK.

The UK's Forum for Private Business (FPB) claimed today (14 August) that some businesses may have to wait 120 days before payment, according to the new terms.

"The FPB is arguing that Carlsberg's payment terms - the longest the FPB has ever been made aware of - could threaten the viability of countless small businesses involved in its supply chain," said the group, which this week sent a letter to Carlsberg UK CEO Isaac Sheps.

"Most of the businesses in our Hall of Shame have been exposed for taking between 40 and 60 days to pay their suppliers," said the FPB policy representative Matt Goodman.

Carlsberg said it was not alone in seeking a longer payment timetable. "Carlsberg is not first mover with respect to new payment terms for suppliers. A lot of companies have changed their payment terms as well," said a spokesperson for the brewer.

Earlier this year, both Diageo and A-B InBev found themselves in rows with the FPB following changes to their payment terms.


Related Content

Carlsberg names new Marston's JV head as Blawat leaves

Carlsberg names new Marston's JV head as Blawat leaves ...

Carlsberg Full-Year 2019 - preview

Carlsberg Full-Year 2019 - preview...

Asia

Asia "firing on all cylinders" for Carlsberg – Analysis...

Carlsberg Performance Trends 2014-2018 - results data

Carlsberg Performance Trends 2014-2018 - results data...

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?