DENMARK: Carlsberg set to defend market position

Most popular

Indonesia the wildcard in CCA buy - comment

Why rum should avoid gin's template for growth

Will Diageo earn its gin wings with Aviation?

The just-drinks analyst returns

What rum needs to do to recognise its potential


Carlsberg's chief executive says the brewer will defend its market position "at any cost," according to press reports. Speaking to Danish daily newspaper Boersen, Nils Smedegaard Andersen said: "Our attitude - and it doesn't matter whether it's a price war in Scandinavia or whatever - is that we will not squander our market position to earn DKK100 m (US$16.2 m) more or less in a year."

Andersen's comments follow the release of Carlsberg's 50%-owned venture Baltic Beverages Holding's interim earnings last week, highlighting that the concern has lost market share in Russia in the last three quarters.

"As long as it's a matter of branded beers, we will fight for every percentage point (of the market), no matter what it costs," Smedegaard added.

BBH's profitability is falling because of rising sales, distribution and marketing costs, Boersen added.

"For Russia ... marketing budgets ... have now been doubled to about 7% of turnover and I think that level is sustainable in the future, although they can naturally be raised if necessary," Andersen told the paper.

"BBH has a turnover that is almost three times as high as that of the number two brewer (Sun Interbrew), and 7% of that for marketing is more than the number two can ever dream of paying."

Related Content

"Zero-based budgeting hasn't been successful in building brands" - just-drinks speaks to Ross Colber...

"This is one of the biggest opportunities to change the way we recycle plastic" - just-drinks speaks...

What the stock market free-fall means for the drinks industry today and tomorrow, and PepsiCo's hopes to become a rock star - The just-drinks Analyst

What the stock market free-fall means for the drinks industry today and tomorrow, and PepsiCo's hope...

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?