Carlsberg is to gain more PepsiCo distribution and bottling rights in northern Europe as a deal the US drinks giant's deal has with Royal Unibrew comes to an end.
The Danish brewer will take over the production, sale and distribution of the PepsiCo portfolio in Denmark, Finland, Latvia, Estonia and Lithuania from the start of 2029.
The Tuborg brand owner has been PepsiCo’s bottler in Sweden and Norway for more than 25 years. It said the latest deal expands its “strategic partnership” with the Pepsi owner to all Nordic markets and the Baltic states.
Carlsberg CEO Jacob Aarup-Andersen said: “This is an exciting move, solidifying our long-standing strategic partnership with PepsiCo.
“The growth prospects and value creation opportunities from a business model which combines the Carlsberg and PepsiCo beverage portfolios are truly significant.”
Eugene Willemsen, the CEO of PepsiCo's international beverages unit, added: “The expanded Carlsberg partnership announced today will provide exciting new growth opportunities for both parties.”
In a separate statement, Royal Unibrew said its tie-up with PepsiCo in Belgium, the Netherlands and Luxembourg will continue beyond 2028 in line with existing contracts.
“Royal Unibrew would have welcomed the opportunity to continue the partnership; however, it has not been possible to reach an agreement,” the statement added.
The PepsiCo beverage business accounts for approximately 13% of Royal Unibrew’s net revenue. The company said its loss of net revenue would be "partly compensated for by accelerated growth in our own brands".
"While ending the partnership was not our preferred outcome, the contract expiry in 2028 will remove a number of structural constraints. This gives us flexibility to further accelerate the growth of our own brands and to explore new partnership opportunities,” Royal Unibrew CEO Lars Jensen said.
“Our own brands – with Faxe Kondi, Jaffa, and Novelle as strong examples – have consistently outperformed the soft drinks market in recent years and are expected to build further momentum. Backed by our well established multi-beverage model, our growth category framework, and our strong customer relationships, we have confidence in our ability to secure long-term growth.”
Shares in Royal Unibrew ended the day down 24.8% at DKr415 ($65). The company also reported its first-quarter results. Net revenue increased 3.3% to DKr3.31bn. EBIT jumped 24.7% to DKr273m. Net profit rose 34.6% to DKr171m.
Jensen added: "Growth in our own brands remains a key top-line driver, reflecting a continuation of the trends from recent years, while we keep enhancing our efficiency at the same time."
Following the new agreement, Carlsberg will have bottling contracts with PepsiCo in 14 markets across Europe, central Asia and Southeast Asia.
Carlsberg also noted the bottling agreements it has in place with The Coca-Cola Company for Denmark and Finland will run until 31 December 2028.
