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French beer market growth prompts further Carlsberg spend on Brasseries Kronenbourg brewery

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Carlsberg is readying a modernisation programme at its Kronenbourg brewery in France, three years after the group invested in adapting the site's operations to handle other SKUs.

Frances beer market has posted growth in the last four consecutive years

France's beer market has posted growth in the last four consecutive years

A spend of EUR23m (US$28.4m) has been lined up for the brewery, in Obernai to the east of the country. In early-2015, Carlsberg said it would invest EUR12m (then-US$13.6m) in the site.

"Investment focuses on improving productivity and addressing sustainable development," a spokesperson for Brasseries Kronenbourg told just-drinks earlier this week. "No new production line is planned. The Obernai plant, which makes one-third of all beer produced in France, is already operating on a three-shift 24-hour basis."

The beer market in France has enjoyed four consecutive years of growth. Kronenbourg CEO Joao Abecasis said the unit's domestic growth has been driven by three premium segments, alcohol-free, craft and aromatic beers, which currently account for 27.5% of Kronenbourg's volumes. In 2010, the three made up less than 10%.

"We intend to pursue and strengthen the transformation of our portfolio, " Abecasis noted.

This will be done through a number new product launches this year in each of these segments.

Carlsberg Performance Trends 2013-2017 - results data


Sectors: Beer & cider

Companies: Carlsberg

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