Carlsberg A/S

Company Profile
Publication Date: 28 Jul 2011

www.datamonitor.com
Europe, Middle East & Africa
119 Farringdon Road
London
EC1R 3DA
United Kingdom

Americas
245 5th Avenue
4th Floor
New York, NY 10016
USA

Asia Pacific
Level 46
2 Park Street
Sydney, NSW 2000
Australia

t: +44 20 7551 9000

f: +44 20 7551 9090
e: euroinfo@datamonitor.com

t: +1 212 686 7400

f: +1 212 686 2626
e: usinfo@datamonitor.com

t: +61 2 8705 6900

f: +61 2 8088 7405
e: apinfo@datamonitor.com

Carlsberg A/S

ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry analysis.
Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased
expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive,
Energy, Consumer Markets, and Financial Services.
The company also advises clients on the impact that new technology and eCommerce will have on
their businesses. Datamonitor maintains its headquarters in London, and regional offices in New
York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies.
Datamonitor's premium reports are based on primary research with industry panels and consumers.
We gather information on market segmentation, market growth and pricing, competitors and products.
Our experts then interpret this data to produce detailed forecasts and actionable recommendations,
helping you create new business opportunities and ideas.
Our series of company, industry and country profiles complements our premium products, providing
top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not
contain the highly detailed breakdowns found in premium reports, profiles give you the most important
qualitative and quantitative summary information you need - including predictions and forecasts.

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.
The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith
from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor
can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Carlsberg A/S
Datamonitor

Page 2

Carlsberg A/S
TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................4
Key Facts...............................................................................................................4
Business Description...........................................................................................5
History...................................................................................................................6
Key Employees.....................................................................................................9
Key Employee Biographies................................................................................10
Major Products and Services............................................................................16
Revenue Analysis...............................................................................................18
SWOT Analysis...................................................................................................19
Top Competitors.................................................................................................25
Company View.....................................................................................................26
Locations and Subsidiaries...............................................................................31

Carlsberg A/S
Datamonitor

Page 3

Carlsberg A/S
Company Overview

COMPANY OVERVIEW
Carlsberg A/S (Carlsberg or the company) is the holding company for the Carlsberg Group. The
company, through subsidiaries is engaged in the production, marketing and sale of beer. Carlsberg
also produces soft drinks, energy drinks and bottled water. The company operates in Europe and
Asia. It is headquartered in Copenhagen, Denmark and employs 41,402 people.
The company recorded revenues of DKK60,054 million ($10,695.6 million) during the financial year
ended December 2010 (FY2010), an increase of 1.1% over FY2009. The operating profit of the
company was DKK10,249 million ($1,825.3 million) in FY2010, an increase of 9.1% over FY2009.
The net profit was DKK5,351 million ($953 million) in FY2010, an increase of 48.6% over FY2009.

KEY FACTS
Head Office

Carlsberg A/S
100 Ny Carslberg Vej
1799 Copenhagen V
DNK

Phone

45 33 27 3300

Fax

45 3327 4701

Web Address

http://www.carlsberggroup.com

Revenue / turnover 60,054.0

(DKK Mn)
Financial Year End

December

Employees

41,402

Copenhagen Ticker CARL B

Carlsberg A/S
Datamonitor

Page 4

Carlsberg A/S
Business Description

BUSINESS DESCRIPTION
Carlsberg A/S (Carlsberg or the company) is one of the leading brewing companies in the world.
It is engaged in the production, marketing and sale of beer. Apart from beer, the company also
produces soft drinks, energy drinks and bottled water. Carlsberg sells its 500 different brands in
more than 150 countries across the world.
Carlsberg's beer range comprises pilsner, non-alcoholic beer, seasonal brews, wheat beer, ale,
stout, and light pilsner. The company's brand portfolio includes international premium brands such
as Carlsberg, Tuborg, Baltika and Kronenbourg 1664; and local brands such as Ringnes (Norway),
Feldschlosschen (Switzerland), Lav (Serbia) and Wusu (Western China).
In accordance with the company's management and reporting structure, beverage activities are
segmented according to the geographical regions where production takes place. The company
operates though three geographic segments: Northern and Western Europe, Eastern Europe, and
Asia.
In Northern and Western Europe segment, Carlsberg is the second largest brewer with market leader
positions in most of the countries. The segment covers mature markets like the Nordic countries,
the UK, France and Switzerland. It also comprises markets like Poland, the Baltic States and countries
on the Balkan Peninsula, where long-term beer consumption is still expected to grow.
The Eastern Europe segment covers the growth markets of Russia and the Ukraine and a number
of emerging beer markets. Carlsberg is the largest brewer in the region holding strong market leader
positions in Russia and all other markets in the region except for the Ukraine.
The Asia segment comprises old, mature Carlsberg markets, (Hong Kong, Malaysia, Singapore),
and new emerging beer markets in China, Vietnam and India. Carlsberg operates its businesses in
these markets through its subsidiaries such as Carlsberg India, Carlsberg Hong Kong, and Carlsberg
Brewery Malaysia.

Carlsberg A/S
Datamonitor

Page 5

Carlsberg A/S
History

HISTORY
Carlsberg A/S (Carlsberg or the company) was established by brewer, J.C. Jacobsen, in 1847, to
produce bottom fermented, matured beer in accordance with the Bavarian tradition. The company
exported its first barrel of beer to Edinburgh, Scotland, in 1868. The Carlsberg Foundation was
created in 1876. In 1882, Jacobsen's son, Carl, opened a brewery under the name Ny (New)
Carlsberg. Jacobsen subsequently changed the name of his brewery to Gamle (old) Carlsberg. In
1887, after Jacobsen's death, The Carlsberg Foundation took over Gamle Carlsberg.
The Carlsberg pilsner's logo, designed by Thorvald Bindesboll, was introduced in 1904. The company
opened its first overseas brewery in Blantyre, Malawi in 1968. Two years later, in 1970, Carlsberg
and rival Danish brewery, Tuborg, merged to form United Breweries.
In 1992, Carlsberg merged with English brewery Tetley. Carlsberg became the sole owner of
Carlsberg-Tetley in 1997. In the same year, the Carlsberg Group acquired 75% of the equity of
Poretti Industries in Italy. In 1998, the company was renamed Carlsberg Italy.
Carlsberg increased its shareholding in the Portuguese brewery, Unicer-Bebidas, to 44% in 2000.
Carlsberg Breweries was formed in 2001, owned 60% by Carlsberg and 40% by Orkla. In 2002, the
company acquired two Bulgarian breweries, Shumensko Pivo and Pirinsko Pivo.
In 2004, Carlsberg bought Orkla's share of Carlsberg Breweries. The company also entered into an
agreement with Ongo Investment and various minority shareholders to acquire 34.5% of Wusu
Brewery, located in the Xinjiang, China. The brewery was operated through a joint venture between
Carlsberg and the Blue Sword Group, a local company. In the same year, Carlsberg Breweries and
Labatt agreed to end their import, distribution and marketing agreement in the US. The company
acquired 91.6% of the share capital of Holsten Brauerei in 2004, with an option of purchasing a
further 6% at a later date. In the same year, Carlsberg acquired 51% of the shares in Serbia's third
largest brewery Pivara Celarevo. The company sold its 29% shareholding in Harboes Bryggeri for
DKK252 million ($49.7 million).
Later in the year, Carlsberg's subsidiary, Holsten-Brauerei of Hamburg sold its 65.1% stake in
Hansa-Brunnen of Rellingen.The company's German subsidiary Holsten-Brauerei sold the breweries,
Konig-Brauerei, in Duisburg and Licher Privatbrauerei, in Lich to the Bitburger Group for E469 million
($690.1million). Later, the company also sold its two business properties at the former premises of
Tuborg Breweries in Hellerup north of Copenhagen. Carlsberg entered an agreement in 2004 with
Ongo Investment, a Singapore registered company, and various minority shareholders to acquire
34.5% of Wusu Brewery, located in the Xinjiang Autonomous Region in North West China. The
company's Swedish subsidiary, Carlsberg Sweden, signed an agreement in the same year to sell
its brewery property in Bromma to the Stockholm Municipality.
Later in the year, Carlsberg's subsidiary, Holsten-Brauerei of Hamburg sold its 65.1% stake in
Hansa-Brunnen of Rellingen.The company's German subsidiary Holsten-Brauerei sold the breweries,

Carlsberg A/S
Datamonitor

Page 6

Carlsberg A/S
History

Konig-Brauerei, in Duisburg and Licher Privatbrauerei, in Lich to the Bitburger Group for E469 million
($690.1million). Later, the company also sold its two business properties at the former premises of
Tuborg Breweries in Hellerup north of Copenhagen. Carlsberg entered an agreement in 2004 with
Ongo Investment, a Singapore registered company, and various minority shareholders to acquire
34.5% of Wusu Brewery, located in the Xinjiang Autonomous Region in North West China. The
company's Swedish subsidiary, Carlsberg Sweden, signed an agreement in the same year to sell
its brewery property in Bromma to the Stockholm Municipality.
Carlsberg launched a new draught beer system for professional and private users under the brand,
DraughtMaster, in Denmark, Norway, Portugal and Sweden, in 2006. In the same year, the company
signed a joint venture agreement with Ningxia Nongken Enterprise Group to establish a greenfield
brewery in the Ningxia Autonomous Region in western China. Further in 2006, the company sold
its remaining stake in Hite Brewery in South Korea. The company's German subsidiary, Carlsberg
Deutschland sold Landskron Brauerei in Gorlitz. Baltika Breweries, a wholly owned subsidiary of
Baltic Beverages Holding, became the majority shareholder of Pikra, Vena and Yarpivo Breweries
in the same year. Later that year, the company entered into a joint venture in India with the aim of
building a green field brewery in the state of Rajasthan.
In 2007, Carlsberg created a new organizational structure, Carlsberg South East Europe, in Serbia,
Croatia and Bulgaria. As part of the continuous optimization of the brewery structure in Western
Europe, Carlsberg decided to concentrate its brewing activities in Italy at the brewery in Varese north
of Milan. In the later part of 2007, Carlsberg completed the acquisition of 70% of the shares in Lao
Soft Drink, the bottler of Pepsi in Laos.
Carlsberg and The Coca-Cola Company (Coca-Cola) entered into an agreement in 2008, wherein
Coca-Cola acquired Carlsberg's mineral water brands Kildeveld and Kurvand in Denmark and also
entered into a license agreement regarding Ramlosa in Denmark. Further, in Finland, Coca-Cola
acquired the soft drink brand Hyvaa Paivaa and entered into a license agreement regarding the
energy drink Battery. Later in 2008, Carlsberg Deutschland launched EVE, a Swiss malt-based
aperitif with a low alcohol content aimed specifically at female consumers.
In 2009, Carlsberg announced to close its Pori brewery in Finland in 2009, due to increased
uncertainty on the Finnish beer market. Carlsberg Deutschland wholesale unit, Goettsche Getraenke,
and Nordmann Group decided to start a joint venture company under the name Nordic GmbH for
distribution of beverages in Northern Germany in 2009. Same year, Carlsberg with its local partner,
Hanoi Beer-Alcohol-Beverages (Hanoi Beer) announced to open a new brewery in Vietnam.
Carlsberg Deutschland announced in 2009 to sell its brewery in Braunschweig to Oettinger Brauerei.
In the same year, Carlsberg China launched Carlsberg Light in China. In 2009, Carlsberg's joint
venture South Asia Breweries announced its plans to open its fifth brewery in India in the state of
Andhra Pradesh. The company announced its plan to purchase a significant stake in Hue Brewery
in 2009. In the same year, Carlsberg announced its plans to concentrate its beer production in
Northampton brewery which would increase its brewery capacity from 4.5 million to 6 million hectoliters
per year.

Carlsberg A/S
Datamonitor

Page 7

Carlsberg A/S
History

The company's subsidiary, Carlsberg Bulgaria, announced to acquire Blagoevgrad-based bread

and bakery products maker Hlyab I Hlebni Izdeliya in January 2010. In December 2010, the company
increased its shareholding in Chongqing Brewery from 17.46% to 29.71%.
In January 2011, Baltic Beverages Holding, which belongs to the Carlsberg, increased its ownership
in OJSC Olivaria Brewery to 67.8%.

Carlsberg A/S
Datamonitor

Page 8

Carlsberg A/S
Key Employees

KEY EMPLOYEES
Name

Job Title

Board

Jorgen Buhl Rasmussen

President and Chief Executive Officer

Executive Board

Jorn P. Jensen

Deputy Chief Executive Officer and Chief

Financial Officer

Executive Board

Povl Krogsgaard-Larsen

Chairman, Supervisory Board

Non Executive Board

Jess Soderberg

Deputy Chairman, Supervisory Board

Non Executive Board

Flemming Besenbacher

Member, Supervisory Board

Non Executive Board

Lars Stemmerik

Member, Supervisory Board

Non Executive Board

Richard Burrows

Member, Supervisory Board

Non Executive Board

Kees van der Graaf

Member, Supervisory Board

Non Executive Board

Per Ohrgaard

Member, Supervisory Board

Non Executive Board

Niels Kaergard

Member, Supervisory Board

Non Executive Board

Hans Andersen

Member, Supervisory Board

Non Executive Board

Bent Ole Petersen

Member, Supervisory Board

Non Executive Board

Ulf Olsson

Member, Supervisory Board

Non Executive Board

Peter Petersen

Member, Supervisory Board

Non Executive Board

Anton Artemiev

Senior Vice President, Eastern Europe

Senior Management

Jorn Tolstrup Rohde

Senior Vice President, Northern Europe

Senior Management

Jesper Friis

Senior Vice President, Western Europe

Senior Management

Roy Bagattini

Senior Vice President, Asia

Senior Management

Peter Ernsting

Senior Vice President, Group Supply Chain

Senior Management

Khalil Younes

Senior Vice President, Group Sales, Marketing

and Innovation

Senior Management

Roger Muys

Senior Vice President, Group Human Resources Senior Management

Anne-Marie Skov

Senior Vice President, Group Communications

and CSR

Carlsberg A/S
Datamonitor

Senior Management

Page 9

Carlsberg A/S
Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Jorgen Buhl Rasmussen
Board: Executive Board
Job Title: President and Chief Executive Officer
Since: 2007
Age: 56
Mr. Rasmussen has been the President and Chief Executive Officer at Carlsberg since 2007.
Previously, he was Executive Vice President for Carlsberg's Denmark region from 200607. Mr.
Rasmussen also held various positions of responsibility, including the President, Gillette Group
AMEE; the President, Gillette Group Northern Europe; and Area Director, Duracell, Northern Europe.
He started his career as Research Manager and Consultant, IFH Research International (Unilever),
Denmark in 1979.

Jorn P. Jensen
Board: Executive Board
Job Title: Deputy Chief Executive Officer and Chief Financial Officer
Since: 2007
Age: 47
Mr. Jensen has been the Deputy Chief Executive Officer and Chief Financial Officer at Carlsberg
since 2007. Previously, he was Chief Financial Officer at Carlsberg and Carlsberg Breweries from
2004 to 2007. Mr. Jensen has also held various other positions of responsibility, including Executive
Vice President and Chief Financial Officer at Nilfisk-Advance; the Chief Financial Officer at Foss
Electric; and Group Controller at Bruel & Kjaer.

Povl Krogsgaard-Larsen
Board: Non Executive Board
Job Title: Chairman, Supervisory Board
Age: 70
Mr. Krogsgaard-Larsenis the Chairman, Supervisory Board at Carlsberg. He also serves as the
Chairman of the Supervisory Boards at Auriga and Bioneer. Mr. Krogsgaard-Larsenis affiliated to
the Faculty of Pharmaceutical Sciences at the University of Copenhagen. With his background as
a researcher and educator, he has expertise in the analysis of issues within the pharmaceutical
sector and the presentation of plans and results. Additionally, Mr. Krogsgaard-Larsenalso has
directorship experience at other international companies.

Carlsberg A/S
Datamonitor

Page 10

Carlsberg A/S
Key Employee Biographies

Jess Soderberg
Board: Non Executive Board
Job Title: Deputy Chairman, Supervisory Board
Age: 67
Mr. Soderberg is the Deputy Chairman, Supervisory Board at Carlsberg. He was the Chief Executive
Officer at the A.P. Moller - Mrsk Group (19932007) and before that, the Chief Financial Officer
in the same company from 1981. Mr. Soderberg also serves as a Member of the Supervisory Board
at The Chubb and Danske Bank's Advisory Board.

Flemming Besenbacher
Board: Non Executive Board
Job Title: Member, Supervisory Board
Age: 59
Mr. Besenbacher is a Member, Supervisory Board at Carlsberg. He also serves as a Director of the
Interdisciplinary Nanoscience Center, Aarhus University. Mr Besenbacher is the Chairman of the
Supervisory Board of the Carlsberg Laboratory and a Member of the Boards of the Tuborg Foundation,
Nanoference and MedTech Innovation Center.

Lars Stemmerik
Board: Non Executive Board
Job Title: Member, Supervisory Board
Since: 2010
Age: 54
Mr. Stemmerik has been a Member, Supervisory Board at Carlsberg since 2010. He is a Member
of the Executive Board of the Carlsberg Foundation and the Board of Directors at the Carlsberg
Laboratory. Mr. Stemmerik also serves as a Member of the Board of Management at GeoCenter
Denmark and the Board of GEUS (Geological Survey of Denmark and Greenland).

Richard Burrows
Board: Non Executive Board
Job Title: Member, Supervisory Board
Since: 2009
Age: 65

Carlsberg A/S
Datamonitor

Page 11

Carlsberg A/S
Key Employee Biographies

Mr. Burrows has been the Member, Supervisory Board at Carlsberg since 2009. Previously, he
served as joint Chief Executive Officer at Pernod Ricard from 2000 to 2005. Mr. Burrows also serves
as Chairman at British American Tobacco and a Non-Executive Director at Rentokil Initial.

Kees van der Graaf

Board: Non Executive Board
Job Title: Member, Supervisory Board
Since: 2009
Age: 61
Mr. Graaf has been the Member, Supervisory Board at Carlsberg since 2009. Previously, he held
the position of President Europe on the Board at Unilever until 2008. Mr. Graaf currently serves as
Member of the Supervisory Boards at the Dutch automobile club ANWB, Ben&Jerry's, 3M Holdings
Benelux, and Mylaps.

Per Ohrgaard
Board: Non Executive Board
Job Title: Member, Supervisory Board
Age: 67
Mr. Ohrgaard is a Member, Supervisory Board at Carlsberg. He is also a Member of the Executive
Board at the Carlsberg Foundation and the Supervisory Boards of property companies affiliated to
the Carlsberg Foundation. Mr. Ohrgaard serves as the Chairman at Leonhardt & Hoier Literary
Agency, and of the folk high school Ostersoen, Abenra, Denmark.

Niels Kaergard
Board: Non Executive Board
Job Title: Member, Supervisory Board
Age: 69
Mr. Kaergard is a Member, Supervisory Board at Carlsberg. He is also a Member of the Executive
Board at the Carlsberg Foundation and Chairman of the Supervisory Board of property companies
affiliated to the Carlsberg Foundation. Mr. Kaergard has expertise in economics and international
affairs, and has served as the Chairman at the Danish Economic Council from 1995 to 2001.

Hans Andersen
Board: Non Executive Board
Job Title: Member, Supervisory Board
Age: 56

Carlsberg A/S
Datamonitor

Page 12

Carlsberg A/S
Key Employee Biographies

Mr. Anderson is a Member, Supervisory Board at Carlsberg. He is an Employee representative on

the Board at Carlsberg Danmark.

Bent Ole Petersen

Board: Non Executive Board
Job Title: Member, Supervisory Board
Age: 57
Mr. Petersen is a Member, Supervisory Board at Carlsberg. He joined Carlsberg as Head of Section
at Carlsberg Research Center.

Ulf Olsson
Board: Non Executive Board
Job Title: Member, Supervisory Board
Since: 2010
Age: 41
Mr. Olsson has been a Member, Supervisory Board at Carlsberg since 2010. He is a Scientist at
Carlsberg Research Center.

Peter Petersen
Board: Non Executive Board
Job Title: Member, Supervisory Board
Since: 2010
Age: 42
Mr. Petersen has been a Member, Supervisory Board at Carlsberg since 2010. He also serves as
the Deputy Chairman of the Board at Carlsberg Staff, Gifts and Entertainment. Mr. Petersen is an
Employee representative on the Boards at Carlsberg Danmark and Carlsberg Breweries.

Anton Artemiev
Board: Senior Management
Job Title: Senior Vice President, Eastern Europe
Since: 2008
Mr. Artemiev has been the Senior Vice President, Eastern Europe at Carlsberg since 2008. He has
also been the President at Baltika Brewery since 2005. Mr. Artemiev serves as Executive Vice
President at Baltic Beverages Holding (BBH). Prior to joining BBH, he headed the Russian operations

Carlsberg A/S
Datamonitor

Page 13

Carlsberg A/S
Key Employee Biographies

department at Bossard Consultants/Gemini Consulting. In 1992, Mr. Artemiev was directly involved
in the recommendations that led to foreign investments in Baltika Brewery.

Jorn Tolstrup Rohde

Board: Senior Management
Job Title: Senior Vice President, Northern Europe
Since: 2009
Mr. Rohde has been the Senior Vice President, Northern Europe at Carlsberg since 2009. Previously,
he was the President and Chief Executive Officer at 3C GROUPS A/S during 200709. Mr. Rohde
has also held senior managerial positions in, amongst others, ORKLA Group and Sara Lee.

Jesper Friis
Board: Senior Management
Job Title: Senior Vice President, Western Europe
Since: 2009
Mr. Friis has been the Senior Vice President, Western Europe at Carlsberg since 2009. He joined
the company in 2005. Prior to that, Mr Friis was the Chief Executive Officer at Ringnes, Carlsbergs
Norwegian subsidiary. He has also worked for Toms Nordic in Sweden, Bacardi-Martini and Leaf.

Roy Bagattini
Board: Senior Management
Job Title: Senior Vice President, Asia
Since: 2009
Mr. Bagattini has been the Senior Vice President, Asia at Carlsberg since 2009. He joined the
company from SABMiller, where he was Regional Managing Director for Eastern Europe. Prior to
that, Mr Bagattini held senior general management positions in South Africa and the US as well as
being Country Managing Director at SABMiller in India, China and Italy.

Peter Ernsting
Board: Senior Management
Job Title: Senior Vice President, Group Supply Chain
Since: 2011
Mr. Ernsting has been the Senior Vice President, Group Supply Chain at Carlsberg since 2011. Prior
to joining Carlsberg, he worked with the Unilever Group most recently as the Chairman at the Unilever

Carlsberg A/S
Datamonitor

Page 14

Carlsberg A/S
Key Employee Biographies

Supply Chain Company. Before this, Mr Ernsting managed Unilever's supply chain organisation in
Asia and Russia.

Khalil Younes
Board: Senior Management
Job Title: Senior Vice President, Group Sales, Marketing and Innovation
Since: 2009
Mr.Younes has been the Senior Vice President, Group Sales, Marketing and Innovation at Carlsberg
since 2009. Prior to joining Carlsberg, he worked 15 years for The Coca-Cola Company. Mr. Younes
was responsible for a number of successful brand developments and change processes around the
world. He started his career with Procter & Gamble in France.

Roger Muys
Board: Senior Management
Job Title: Senior Vice President, Group Human Resources
Since: 2010
Mr. Muys has been the Senior Vice President, Group Human Resources at Carlsberg since 2010.
He joined the company from a position as the Senior Vice President, Human Resources at Royal
Philips Lighting Sector. Before that, Mr. Muys was Senior Vice President, Human Resources at
Philips Consumer Electronics in Amsterdam. Prior to joining Philips, he was with General Electric,
where he held a number of key Human Resources position.

Anne-Marie Skov
Board: Senior Management
Job Title: Senior Vice President, Group Communications and CSR
Since: 2004
Ms. Skov has been the Senior Vice President, Group Communications and CSR at Carlsberg since
2004. Prior to joining Carlsberg, she worked with the Novo Group, most recently as the Vice President
and Member of the Executive Management of Novozymes. Ms. Skov also serves as a Member of
the Supervisory Board at WWF Denmark, the Tuborg Foundation, Erik Moller Architects and Norrebro
Teater.

Carlsberg A/S
Datamonitor

Page 15

Carlsberg A/S
Major Products and Services

MAJOR PRODUCTS AND SERVICES

Carlsberg A/S (Carlsberg or the company) is the holding company for the Carlsberg Group. The
company, through subsidiaries is engaged in the production, marketing and sale of beer. Carlsberg
also produces soft drinks, energy drinks and bottled water. The company's key
products and brands include the following:
Products:
Beer
Soft drinks
Water
Brands:
Arendals Pilsner
Arsenalnoe
Aldaris
Alivaria
Bosman Full
Baltika
Carlsberg
Carls Hvede
Carls Porter
Carls Ale
Carls Special
Carlsberg Elephant Beer
Cardinal Eve
Dahls Pilsner
Dragon & Beer Green
Eriksberg
Euro Beer
Falcon Ale
Feldschlosschen Original
Gurten Lager
Grimbergen Blonde
Holsten
Hurlimann Lager
HARD ROCK
Instant Pression 1664
Irbis
Jacobsen Vintage No. 1
Jacobsen Brown Ale
Jacobsen Original Dark Lager

Carlsberg A/S
Datamonitor

Page 16

Carlsberg A/S
Major Products and Services

Jolly Shandy
Kronenbourg
Karmi
Kvas Taras
Light Beer
Lubzer Export
Lvivske Premium
Millenium Starkol
Mythos
Nikolai IVA
Nevskoe
Nutrimalt
Okocim Mocne
Pripps Blue
Pan Lager
Pirinsko Pivo
Ringnes Pilsener
Royal Stout
Somersby Cider
Semper Ardens Abbey Ale
Super Bock
Saku Blond
Svyturys Baltas
Tuborg Classic
Tuborg Special
Tetleys Original
Uralsky Master
Utenos
Valaisanne Lager
Wiibroe Argangsol
Wind Flower Sun & Moon
Yarpivo
Zatecky Gus
Zelta

Carlsberg A/S
Datamonitor

Page 17

Carlsberg A/S
Revenue Analysis

REVENUE ANALYSIS
Carlsberg A/S (Carlsberg or the company)
Carlsberg recorded revenues of DKK60,054 million ($10,695.6 million) during FY2010, an increase
of 1.1% over FY2009. For FY2010, Northern and Western Europe, the company's largest geographic
market, accounted for 60.3% of the total revenues.
The company generated 100% of its revenues from sale of beer and other beverages in FY2010.
Carlsberg activities comprise the production and sale of beer and other beverages. In accordance
with the company's management and reporting structure, beverage activities are segmented according
to the geographical regions where production takes place.
Revenues by geography*
Northern and Western Europe, Carlsberg's largest geographical market, accounted for 60.3% of the
total revenues in FY2010. Revenues from Northern and Western Europe reached DKK36,122 million
($6,433.3 million) in FY2010, a decrease of 0.9% compared to FY2009.
Eastern Europe accounted for 30.3% of the total revenues in FY2010. Revenues from Eastern
Europe reached DKK18,141 million ($3,230.9 million) in FY2010, a decrease of 2.2% compared to
FY2009.
Asia accounted for 9.4% of the total revenues in FY2010. Revenues from Asia reached DKK5,613
million ($999.7 million) in FY2010, an increase of 32.9% over FY2009.
* The percentage breakdown for geographical segments is calculated out of the sub-total sales
excluding the not-allocated amount.

Carlsberg A/S
Datamonitor

Page 18

Carlsberg A/S
SWOT Analysis

SWOT ANALYSIS
Carlsberg A/S (Carlsberg or the company) is the holding company for the Carlsberg Group. The
company, through subsidiaries is engaged in the production, marketing and sale of beer. Carlsberg
also produces soft drinks, energy drinks and bottled water. Strong regional presence and portfolio
of brands offers Carlsberg a distinct competitive advantage in the market place and also enhances
the bargaining power besides resulting in steady revenues and profits. However, stringent advertising
regulations would limit the brand's future promotional campaigns and its awareness among the
consumers.
Strengths

Weaknesses

Leading regional presence built on strong

brand portfolio
Cost-reduction initiatives to improve margins
Brand innovation to adjust with the changes
in consumer tastes and preferences

Lacks scale of operation compared to its

competitors
Limited presence in the US beer market
Constrained capital efficiency

Opportunities

Threats

Positive outlook for beer market in Asia

pacific region
New product development likely to sustain
customer interest

Stringent advertising regulations

Negative health attributes associated with
beer
Imposition of 200% Excise duty on beer
products in Russia

Strengths

Leading regional presence built on strong brand portfolio

Carlsberg is the fourth largest brewer in the world and is particularly strong in Northern and Western
Europe. It holds leading positions in European market, where its share is around 56.7% in Denmark,
Norway (52.2% share), Finland (46.4% share), France (30.3%), Russia (39.7%) and the UK (15.4%).
The company also has substantial market share in Asia. It holds nearly 98% market share in Laos,
Nepal (80%), Cambodia (60.1%), Malaysia (41%), and Vietnam (37%).
The company markets and sells more than 500 different beer brands around the world.The company's
flagship brand - Carlsberg - is one of the best-known beer brands in the world. The brand portfolio
includes other well-known international premium brands such as Tuborg, Baltika and 1664; and
strong local brands such as Ringnes (Norway), Feldschlosschen (Switzerland), Lav (Serbia) and
Wusu (Western China). In western China, Carlsberg holds number one position with a market share

Carlsberg A/S
Datamonitor

Page 19

Carlsberg A/S
SWOT Analysis

of approximately 60%, mainly through its local brands such as Wusu, Xixia and Dali. In Bulgaria,
the company ranked number two in the market with a market share of approximately 28%.
The strength of the company's brand portfolio is highlighted by the fact that Baltika, Carlsberg and
Tuborg are among the six biggest brands in Europe, with Baltika ranked as number one. In addition,
the company's French brand, Kronenbourg, holds tenth position in Europe and brand Ringnes is the
Norway's leading pilsner beer. Strong regional presence and portfolio of brands offers Carlsberg a
distinct competitive advantage in the market place and also enhances the bargaining power besides
resulting in steady revenues and profits.
Cost-reduction initiatives to improve margins
The company has implemented various cost-reduction initiatives to boost productivity and improve
profitability. Carlsberg is focusing on raising profitability by reforming cost structures, and the shared
use of upgraded distribution bases across company operations, aimed at reducing costs. The
company has taken many initiatives to improve efficiency from cash flow management to network
optimisation. It started globalising and centralising a number of back-office functions, as well as
other relevant areas. It includes a shared accounting service centre in Poland, a centralised
procurement centre in Switzerland, a centralised IT organisation for the Northern and Western
European region, and an integrated Innovation, Research and Development organisation at company
level.
In addition, in FY2010, Carlsberg announced its portfolio simplification project. This will allow more
products to be produced in one place and shipped cross-border, leading to fewer types of bottles
and cans being produced in each brewery and fewer line stoppages. A simplified portfolio provides
a wider variety of products for all markets as it allows packages from one country to be used in
another while at the same time reducing production complexity and costs. Tuborg Lime Cut was
brewed and packaged in Lithuania and then shipped to Denmark and Norway. Similarly, Bottled
Somersby Cider is produced in Sweden and then shipped across to other Nordic countries. Also,
kvas, a traditional Eastern European brewed soft drink, is produced in Ukraine and then transported
to consumers in Estonia, Latvia and Lithuania.
The cost-reduction, thus, will help the company in reducing its operating expenses and hence
improving the margins. While, at the same time, the strategies will result in maximum capacity
utilization hence improving productivity or reduced cost-base.
Brand innovation to adjust with the changes in consumer tastes and preferences
Carlsbergs broad brand portfolio caters to each sub-segment of beer category. Besides, the company
is focused on continuous innovation to either introduce new varieties or improve the packaging and
marketing proposition of the existing ones. As a continued focus on innovation, the company started
targeting a new consumer group, women. Around the world, women account for more than one third
of all alcohol consumption. Carlsberg launched few drinks aimed at women or a unisex platform,
including Somersby, Baltika Cooler, Kronenbourg 1664 and Eve. Eve is packaged in an elegantly

Carlsberg A/S
Datamonitor

Page 20

Carlsberg A/S
SWOT Analysis

feminine bottle and is targeted at women aged 25-35. It has also a light and crisp fruit flavour (lychee,
passion fruit or grapefruit) and a relatively low alcohol percentage.
Further, in order to respond to the demand for increasing volumes while also making premium
products available in attractive bigger-size packaging formats suitable for premium products,
Carlsbergs Russian business came together with can producer Rexam to develop the worlds first
one-piece 1-litre can. In Russia, the 1-litre can represents a value-for-money option just as multipacks
do in Northern and Western Europe. In 2010, Carlsberg introduced the big-size can in Estonia,
Denmark and Finland, where the can is the perfect size for consumer occasions. In line with the
companys simplification project, the 1-litre cans for the Danish and Finnish markets are produced
and filled by Carlsbergs brewery in Estonia.
Innovations like this further helped the company in improving the customer experience, thus increasing
the sense of brand loyalty. Besides, product innovation to cater to ever changing consumer taste
and preferences enables the company to stay ahead of its competitors.

Weaknesses

Lacks scale of operation compared to its competitors

Despite being one of the largest brewer in the world and the largest in Northern and Western Europe,
Carlsberg lacks the scale to compete effectively with its competitors in the beverage industry. Scale
is crucial to cost leadership in the beer industry because the brewing process requires heavy
investment in plant and equipment, and a significant proportion of brewers' costs are fixed. Many of
its competitors, such as Anheuser-Busch InBev, Heineken and SABMiller are much larger in size in
terms of revenues. In FY2010, Anheuser-Busch InBev recorded revenues of $36,297 million,
significantly higher than Carlsberg. Similarly, Heineken recorded revenues of $21,403.7 million
(E16,133 million) and SABMiller recorded revenues of $18,020 million during the same period.
Carlsberg, in contrast, recorded revenues of DKK60,054 million ($10,695.6 million) in FY2010.
Further, with FY2010 beer volume of around 136.5 million hectoliters, Carlsberg lagged far behind
global behemoths Anheuser-Busch InBev (399 million hectoliters) and SABMiller (213 million
hectoliters). Although there is some loyalty to beer brands, consumers usually have a choice of lager
in both on-premise and off-premise channels, so switching costs are low. Carlsberg's lack of scale
means that it is unlikely to generate the excess returns on invested capital enjoyed by the global
leaders in the brewing industry. Thus, lack of scale hinders Carlsberg a competitive advantage and
also reduces its bargaining power in the fiercely competitive market.
Limited presence in the US beer market
Although the company is well established in Europe, it has a limited presence in the US. The US
accounts for 16.5% of the global beer market's value, with consumption in excess of 24,959.8 million
liters. The US beer industry is dominated by three producers namely, Anheuser-Busch InBev,

Carlsberg A/S
Datamonitor

Page 21

Carlsberg A/S
SWOT Analysis

SABMiller and Molson Coors Brewing Company, who command nearly 80% of the market share.
Despite the US market is growing at a slower rate compared with certain Eastern European and
Asian markets, lack of presence in this market puts the company at a disadvantage compared with
some of the other large players in the industry.
Constrained capital efficiency
The company's capital management ability has declined in recent past as reflected in its Return on
Invested Capital (ROIC) measure, which assess a company's efficiency at allocating the capital to
profitable investments. The ROIC which demonstrates how efficient management is at using its
money to generate returns, declined from 11.7% in FY2007 to 8.8% in FY2010. Declining ROA
reflects the company's inability to optimally utilize its assets to generate adequate return on capital.
The company could feel constrain on its capital management due to poor assets utilization.

Opportunities

Positive outlook for beer market in Asia pacific region

The Asia-Pacific beer market has witnessed a significant growth in the recent periods. As per
Datamonitor's report, the Asia-Pacific beer market grew by 2.9% in 2009 to reach a value of $112,221
million. In 2014, the market is forecast to have a value of $135,995.6 million, an increase of 21.2%
since 2009.
Carlsberg operates in Asia pacific markets through various subsidiaries which provide an opportunity
for the company to tap the growing demand for beer products in this region. Furthermore, many of
the company's brands including Carlsberg, Black Panther Stout, Holsten, Tetley's Original, Dragon
& Beer Green, Dali Beer, Skol, Jolly Shandy, Danish Royal Stout Ginseng, Nutrimalt and Tuborg
Green have a strong presence in the Asia pacific markets. Carlsberg is thus well placed to capitalize
on the growing beer market in the Asia-Pacific region which will add to its topline growth.
New product development likely to sustain customer interest
The company seeks to increase sales and market share by introducing new products, and further
enhancing its existing line of products. Carlsberg incurred DKK109 million ($19.4 million) and DKK101
million ($18 million) in research and development during FY2010 and FY2009, respectively.
Such investment has helped the company in developing various new products. For instance, Baltika
Draught, Baltika anniversary limited edition, Baltika Cooler PET extension, Nevskoe Imperial and
Zatecky Gus Dark, were all launched in Russia. The company also launched Derbes Draught and
Alma-Ata, new varieties in Kazakhstan; Lvivske Live Beer, Baltika 7 and Holsten PET extension in
Ukraine; and Alivaria Live Beer in Belarus. Other brands such as Grimbergen and Eve were introduced
in Russia. Eve was also launched in Kazakhstan.

Carlsberg A/S
Datamonitor

Page 22

Carlsberg A/S
SWOT Analysis

In addition, in non-beer products, the company launched mineral water and increased distribution
of soft drinks in Russia. Non-beer development also includes Somersby in Russia and ice tea in
Ukraine. New and improved products are likely to drive the companys organic sales growth. By
introducing new products as per the changing market needs, the company can increase its product
portfolio and revenues.

Threats

Stringent advertising regulations

Alcohol companies have been criticized for irresponsible portrayal of alcoholic drinks in
advertisements. Especially in Europe and many other countries, advertising regulatory bodies are
coming down heavily on alcohol advertising, claiming that such advertisements fuel binge drinking.
European Union (EU) incorporated the Television without Frontiers Directive which requires all
advertisements and sales promotions to comply fully with the legislation. Besides, TV and radio
commercials are required to be cleared by the Broadcast Advertising Clearance Centre and the
Radio Advertising Clearance Centre, respectively. Most EU countries impose a legal ban on
advertising of spirits on TV and radio; on broadcast advertisements linking alcohol with children,
driving or sport, or promoting alcohol abuse; and on sponsorship of TV and radio program by
companies primarily concerned in alcohol production. Since Carlsberg majorly operates in Europe,
such stringent rules on advertisements in EU would limit the brand's future promotional campaigns
and its awareness among the consumers. The limited exposure could curtail the company's growth
since the brand recognition among consumers will get diluted with time due to minimal promotion
and advertising.
Negative health attributes associated with beer
Beer has always been associated with negative health attributes. There is a general negative
perception about beer's effect on the body fat and cholesterol. A very common term associated with
beer is 'beer belly', increased fat around the waist. On the other hand, its competitor, wine is perceived
as healthier alternative to other beverages. As there is a general shift in consumer preference towards
healthier substitutes in matured markets like Western Europe and North America, beer is losing its
ground to wine. Besides, easy availability of a wider variety of alcohol products and extensive
marketing is also affecting the beer sales. If the beer market continues to lose its share in the
beverage category, Carlsberg will have to compete with other major competitors for dwindling market
share. Carlsberg efforts to enter these lucrative and matured markets can be hampered if this trend
continues.
Imposition of 200% Excise duty on beer products in Russia
In order to curb alcohol consumption, the Russian Government imposed a new excise duty on beer
products in January 2010 which is likely to have an adverse impact on revenues and margins of the
beverage companies in Russia. Russia is one of the biggest beer drinking countries in the world,

Carlsberg A/S
Datamonitor

Page 23

Carlsberg A/S
SWOT Analysis

consuming 9,278.6 million liters in FY2009 but consumption could plummet in the future due to 200%
increase in excise duty.
Carlsberg has a strong leadership position in the Russian beer market through its subsidiary Baltika
and with the new excise duty in Russia is likely to have a negative impact on its beer sales. The rise
in the excise duty on beer products in Russia will undoubtedly make things tougher for beer companies
such as Carlsberg, already struggling to maintain sales in a weak economic environment.

Carlsberg A/S
Datamonitor

Page 24

Carlsberg A/S
Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Carlsberg A/S

Asahi Breweries, Ltd.

Heineken N.V.
Kirin Brewery Company, Limited
SABMiller
Asia Pacific Breweries Limited
Anheuser-Busch InBev SA/NV

Carlsberg A/S
Datamonitor

Page 25

Carlsberg A/S
Company View

COMPANY VIEW
A statement by Jorgen Buhl Rasmussen, the President and Chief Executive Officer at Carlsberg is
given below. The statement has been taken from the companys 2010 annual report.
We are very pleased with the strong performance in 2010 as it was a unique year due to a very large
excise duty increase in our largest market.
As the year progressed, we started to see improving trends in all regions compared to the very
challenging 2009, when most markets were impacted by the economic crisis. While Northern &
Western European beer markets remained challenging with an overall market decline, the trend in
2010 improved versus the weaker 2009 market development. The Russian market dynamics were
more difficult to forecast than usual due to the substantial price increases needed to cover the large
excise duty increase of 200% on 1 January 2010. Driven by an improved macroeconomic environment,
a warm summer in Q3 and the phased implementation of price increases, the Russian market trend
improved throughout the year. The other Eastern European markets improved significantly compared
to 2009. The Asian beer markets, which were largely unaffected by the economic crisis in 2009,
continued their very strong growth pattern.
Organic beer volumes declined by 2%. Including acquisitions, net, the decline was 1% to 114.2m hl
(116.0m hl in 2009). Adjusting for the Russian destocking impact, the Groups organic beer volume
growth would have been 1%.
Northern & Western European organic beer volume development was fl at despite an estimated
market decline of 2-3%. Beer volumes in Eastern Europe declined organically by 9% (-3% excluding
destocking), mainly driven by the destocking in Q1 and the significant price increases in Russia
following the excise duty increase in January. The Asian region continued to perform strongly with
14% organic beer volume growth.
The Q4 organic beer volume decline was 5%, mainly attributable to the Eastern European region,
which faced tough comparables due to strong growth in Q4 2009 from stock-building among
distributors ahead of the excise duty increase (fl at adjusted for the stock-building).
Pro rata Group volumes of other beverages were 19.3m hl (19.8m hl in 2009). The decline was
mainly driven by the strikes in Denmark and Finland in Q2 and portfolio optimisations in a few
markets.
The Group increased marketing investments by double-digit percentages in all three regions in 2010
to drive profitable market share growth. This was effected through support of our key brands, new
products and innovations including major customer and consumer activations. Innovations, new
product launches and relaunches of existing brands will remain a key focus area for the Group in
2011.

Carlsberg A/S
Datamonitor

Page 26

Carlsberg A/S
Company View

The introductions and relaunches were carried out across all three regions and were a combination
of innovations, relaunches of existing brands and the roll-out of Group brands in new markets.
Examples include new products under the Baltika umbrella in Russia, Zatecky Gus Dark in Russia,
Tuborg Lime Cut in the Nordic markets, Kronenbourg Slection in France, relaunches and line
extensions in several Asian markets such as Vietnam, China and Cambodia, and the roll-out of
Kronenbourg 1664, Somersby and Eve in new markets across the three regions.
Despite a challenging year in Russia, Group net revenue grew by 1% to DKK 60,054m (DKK 59,382m
in 2009) with a 3% organic decline (total volume -2% and -1% price/mix), currency impact 5% and
-1% net acquisition impact.
To ensure that volume and value market share growth are maximised across channels and customers,
the Group continued to apply and develop our value management and channel marketing tools.
In 2010, the Group benefited from favourable hedges, lower input costs and efficiency initiatives.
Cost of sales per hl declined with large variations between markets and regions. Hence, gross profit
margin increased by 260bp to 51.7%. The organic gross profit growth was 1%. Gross profit per hl
increased in all regions with particularly strong improvement in Asia.
Group operating profit grew by 9% to DKK 10,249m (DKK 9,390m in 2009). Organic growth was
1%, currency impact was 8% and there was no net effect from acquisitions. Q4 operating profit
declined by 33% (organic decline of 36%). Northern & Western Europe and Asia reported strong
organic growth in Q4, while Eastern European profits declined, as expected, due to the stock-building
in Russia in Q4 2009 and increasing input costs in the quarter. Adjusted for the Russian stock-building
in Q4 2009, which added an estimated DKK 300m in operating profit, the organic operating profit
growth would have been an estimated 8% for 2010.
Although the Group is focusing intensively on driving profitable market share growth, this was
balanced with the strong focus on improving efficiencies across the Group. This is a continuous
process and an integrated part of the Carlsberg strategy and business model.
Operating margin improved by 130bp to 17.1% (15.8% in 2009). The Group is well on track to meet
the medium term margin targets for both the Group and our three regions, although margins will
fluctuate between years depending on both external and internal factors such as input costs, price
increases and country mix.
Net profit was DKK 5.4bn (DKK 3.6bn in 2009) and earnings per share was DKK 35.1 (DKK 23.6 in
2009), a 49% increase.
Operating cash flow was DKK 11bn, compared to the exceptionally strong operating cash flow of
DKK 13.6bn in 2009. The 2009 operating cash flow benefitted significantly from a substantial working
capital improvement. In 2010 the Group managed to further reduce working capital, both as an
average throughout the year and at the end of the financial year. This was a result of the ongoing
efforts to optimise working capital management. For 2010 and onwards the Group has shifted focus
from the end-of-year working capital level to the average level for the year. The positive impact from

Carlsberg A/S
Datamonitor

Page 27

Carlsberg A/S
Company View

reduced working capital was DKK 0.7bn (DKK 3.7bn in 2009). Average trade working capital to net
revenue declined to 2.6% (5.6% in 2009).
Free cash flow was DKK 5.2bn (DKK 10.5bn in 2009). In 2010, a significantly higher level of cash
was spent on acquisitions, and total financial investments in 2010 amounted to DKK 2.7bn (DKK 0
in 2009).The acquisitions were primarily in Asia, where the Group increased its holdings in companies
where it already had ownership.
Driven by the improved profitability, the return on average invested capital in the beverage activities
grew to 9.8% (9.3% in 2009), which is the highest level since the Scottish & Newcastle acquisition.
Northern & Western Europe reported particularly strong improvement from 13.6% to 17.2%. For
both Northern & Western Europe and Eastern Europe, capital expenditures were kept below
depreciation, while the opposite was the case in Asia due to capacity expansions.
Deleveraging has been a high priority in recent years, and in 2010 net debt was further reduced. At
the end of 2010, net debt amounted to DKK 32.7bn (DKK 35.7bn at the end of 2009). Net debt/EBITDA
declined to 2.3x (2.7x at the end of 2009). The Group is committed to an investment grade credit
quality.
Following the deleveraging that has taken place, it has been decided to propose to the Annual
General Meeting a 43% increase in dividends to DKK 5.00 per share (DKK 3.50 for 2009).
In October 2010 the Group established a new 5-year multi-currency revolving credit facility of EUR
1.75bn and issued 7-year EUR notes of EUR 1bn with attractive prices and conditions. The new
facilities were mainly used to refinance the Scottish & Newcastle acquisition facilities. Following the
refinancing, the Group has extended the maturity profile of its debt and achieved more balanced
funding sources.
During 2010, several structural changes took place. Most of these changes were in the Asian region.
In January, the Group received the final approvals to increase its direct and indirect shareholding in
the Wusu Xinjiang Beer Group in Chinas Xinjiang Province to 65%. In November, the Group increased
the shareholding in Gorkha Brewery in Nepal to 90%, including put options. In December, the Group
obtained the final approvals to increase the shareholding in the Chinese Chongqing Brewery Co.
Ltd. from 17.46% to 29.71%. Lastly, the Group increased the shareholding in Olivaria Brewery in
Belarus from 37% to 68%.
Organisationally, several tools continued to be developed and rolled out to drive capability building,
improved processes and decision-making.
2011 earnings expectations
2011 will be a year in which profitable market share growth will be driven by innovations, investments
in key brands combined with The Carlsberg way of doing business initiatives, improved
route-to-market models and continued value and channel management efforts.

Carlsberg A/S
Datamonitor

Page 28

Carlsberg A/S
Company View

The efforts to drive revenue and market share growth will be carefully balanced with the continuous
efforts to improve operational and capital efficiencies.
The key assumptions underpinning the outlook for 2011 are:
Low single-digit decline in Northern & Western European markets
Russian market growth of 2-4%
Continued growth in key markets across Asia
Increasing cost of sales due to higher input costs
Marketing investments as percentage of sales at slightly higher levels than in 2010
Consequently, for 2011 the Carlsberg Group expects:
Market share growth in markets representing 2/3 of our business
High single-digit percentage growth in operating profit
Adjusted net profit growth of more than 20%
The impact from increased input costs will be mitigated by higher sales prices in all regions. In
Eastern Europe, the impact from increased input costs will be higher than the Group average and
consequently operating profit margin in the region will be impacted negatively for 2011.
The year-over-year profit development by quarter in Eastern Europe in 2011 will show a different
pattern than usual. For instance, it is expected that in Q1 the Eastern European region will deliver
very strong year-over-year top-line growth as Q1 2010 was very weak due to destocking and as the
excise duty increase impacted both market development and the net sales prices for the quarter.
The Group confirms the mid-term operating margin targets that were announced in February 2010,
both for all regions and for the Group.
Ambition remains intact
On behalf of the Carlsberg Group I would like to thank our many employees around the world for
their efforts and contribution to making 2010 yet another year of strong performance. I would also
like to thank our customers, partners and suppliers around the world for their continued support and
cooperation. And finally, I would like to thank our shareholders for endorsing our strategy.

Carlsberg A/S
Datamonitor

Page 29

Carlsberg A/S
Company View

Our ambition to be The fastest growing global beer company remains intact and our strategy has
five key priorities guiding this ambition: our people; our consumers and customers; products and
innovation; structure and society; and efficiency. A core element of our strategy is to ensure that
corporate social responsibility (CSR) is integrated into everything we do. CSR is our licence to
operate and we view it is an important means to being a preferred brand, employer and partner.

Carlsberg A/S
Datamonitor

Page 30

Carlsberg A/S
Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office
Carlsberg A/S
100 Ny Carslberg Vej
1799 Copenhagen V
DNK
P:45 33 27 3300
F:45 3327 4701
http://www.carlsberggroup.com

Other Locations and Subsidiaries

South East Asia Brewery
167B Minh Khai
Hanoi
VNM

Carlsberg Canada Inc.

2630 Bristol Circle, Suite 300
Oakville
Ontario
L6H 6Z7
CAN

Carlsberg Brewery Hong Kong Limited

1/F Delta House
3, Siu Lek Yuen, On Yiu Street
HKG

Baltika Breweries
3, 6 Verkhny pereulok
St. Petersburg 194292
RUS

Carlsberg Deutschland GmbH

Holstenstrasse 224
22765 Hamburg
DEU

Israel Beer Breweries Ltd.

5 Bar Lev Ave.
Ashkelon 78191
ISR

Foster's Australia
77 Southbank Blvd
Southbank
Victoria 3006
AUS

Carlsberg Importers SA.

Industrielaan 16 20
1740 Ternat
BEL

Carlsberg India Private Limited

Plot 52
Sector 32
Institutional Area
Gurgaon 122001
Haryana
IND

Carlsberg UK
Jacobsen House
140 Bridge Street
Northampton NN1 1PZ
GBR

Carlsberg A/S
Datamonitor

Page 31