Carlsberg’s will only be able to grow through the development of its global operations in Central and Eastern Europe and Asia, according to a new report from the beverage analyst Canadean. And with an increasing number of brewers looking in the direction of Eastern Europe, Carlsberg will have to devise a highly targeted campaign to obtain maximum benefits.
One strategy has been for the company to transfer ownership of its operations in Russia, Ukraine and the Baltics to BBH, (which it controls with S&N) so consolidating its activities, and constructing an entry barrier to competition.
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“Having established a good relationship with S&N in Russia via BBH, Carlsberg may also extend this into Western Europe. Carlsberg could benefit from S&N’s business in France, Belgium and Greece while the UK group could take advantage of Carlsberg’s links in Scandinavia, Switzerland, Italy and Germany,” the report says.
In Asia Carlsberg has been operating for over a hundred years in what is now the world’s largest beer market, China. However, both here and in the highly attractive South Korean market the company will need to increase its representation if it is to press home its advantage, says Canadean.
The report also queries whether Carlsberg has enough premium products to benefit from the increasing international demand for premium beers. It may have to develop Tuborg in other markets but, says Canadean, concentration on one brand could result in lost opportunities.
“In the meantime Carlsberg’s long established reputation for innovation is still alive and kicking. It was announced in the Autumn that the company is to increase research into enzymes for beer production, claiming that this will fuel a double digit return over the next couple of years,” says the report.
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