Carlsberg looks to premium beers and Asian markets for growth

In an earnings-call briefing on 7 February 2024, Danish brewer Carlsberg announced that it is doubling down on driving expansion in Asia, with a focus on China, its largest Asian market, as it raises its 2027 targets for operating profit growth and revenue.

Carlsberg CEO Jacob Aarup-Andersen gave few details about how it would reach its more ambitious goals for 2027, but hinted that Carlsberg would prioritise premium beer brands and expand its product range to incorporate non-beer beverages. It also plans to increase sales and marketing spend by over 10% in the coming year, with a large portion of that dedicated to China as well as other key Asian economies and its portfolio of more expensive beers.

While the consumer environment in China has remained subdued, Aarup-Andersen said the company expected to grow sales volumes there through market share expansion. “There’s no doubt that the Chinese market in 2024 will at least start in the same way that it ended, which means a subdued consumer environment,” he said.

Beyond China, Vietnam and India are also focus areas for the multinational. “We are also confident about the opportunities in India, but will await the resolution of the current ownership situation. In addition to China, Vietnam and India, we are evaluating which other markets possibly qualify for similar step change,” said Aarup-Andersen.

For 2024, it expects organic operating profit growth of between 1% and 5% in 2024. Its target, however, was behind many analysts’ expectations. It also announced plans to deepen Carlsberg’s presence in big cities and optimise its portfolio for commercial investments. The company will also focus on increasing digital and marketing capabilities, with stable but subdued consumer sentiment in Southeast Asia.