Carlsberg’s 2025 performance report is out: The CEO says Chinese beer consumption continues shifting toward off-trade channels, and 1-liter large-pack products have become a powerful driver in retail channels; the overall market is stabilizing this year.

This means Carlsberg China’s strategic transformation focusing on major cities has delivered results. As Xiaoshidai previously reported, by Q3 last year, the company covered 99 major cities in China—these cities contributed one-third of its total sales volume. Due to macroeconomic headwinds and the need to focus resources for greater effectiveness, the company’s major-city strategy has shifted from ‘broad coverage’ to ‘deep penetration’, prioritizing growth through expanding existing market share. ‘In terms of market share, we categorize major cities into tiers and set differentiated targets accordingly. For example, in cities where our share is below 5%, we aim to lift it to 7% or 8%; in cities where our share stands at 15%–20%, we target raising it to around 30%.’ At the end of last year, Li Zhigang, President of Carlsberg China, noted that this approach is more efficient than launching operations in entirely new cities—and better suited to the current market environment. He also pointed out that although deepening presence remains the priority for now, expansion into new cities isn’t ruled out in the future—provided it aligns with actual conditions. Priority will be given to regions with strong potential and suitability for deep penetration, striking an appropriate balance between breadth and depth. Secondly, Carlsberg China performed exceptionally well in emerging channels—including instant retail (O2O), e-commerce, and convenience stores. ‘Beer consumption continues shifting toward off-trade channels—especially e-commerce and modern retail—while on-trade channels remain weak,’ Jacob said. Thirdly, the contribution of 1-liter new products: these large-pack offerings serve as a potent lever for Carlsberg to capture off-trade channels. ‘In China, we continue boosting sales of 1-liter products to strengthen our position in increasingly important retail channels,’ Jacob noted. Carlsberg’s 1-liter beers are primarily designed for social sharing occasions and feature premium, sophisticated packaging to stand out on shelves. As Xiaoshidai previously reported, Carlsberg China launched over ten 1-liter beer SKUs last year—including the ‘Wusu Craft Brew Da Hong Pao’ 1L, ‘Shancheng Longjing Green Tea Craft Brew’ 1L, and ‘Dali Craft Brew’ 1L. These are not merely larger versions of existing products but incorporate local taste preferences—for instance, tea-infused flavors—through innovation. Currently, most of Carlsberg China’s 1-liter beers are under local brands; going forward, more internationally branded variants tailored to local demand will gradually roll out. Cautiously optimistic Looking ahead to 2026, Carlsberg maintains a cautiously optimistic outlook for its China business. ‘I won’t disclose specific data for January this year. Overall, we believe consumer activity is stabilizing—but we won’t make overly optimistic claims about any sudden shift in China’s growth trajectory.’ Jacob believes the Chinese beer market is trending toward stability, creating space for Carlsberg to accelerate efforts. While remaining cautious about evolving consumer conditions, the company is also monitoring potential policy measures aimed at stimulating consumption. He added that last quarter further validated Carlsberg China’s strategic positioning and choices as effective drivers of growth—and that such growth is expected to continue. Accordingly, Carlsberg anticipates sustained growth in its China business throughout 2026. Finally, let’s take a look at Carlsberg Group’s overall performance. According to the Group’s 2025 annual report, organic volume declined by 2.0%; organic revenue fell by 0.6% (note: excluding the negative impact from the termination of the San Miguel beer licensing agreement in the UK, organic revenue would have grown by 1.1%); and organic operating profit rose by 5%, driven by higher organic gross margin, improved cost efficiency, and synergies from the Britvic integration exceeding expectations.

Carlsberg ‘outperformed the broader market’ in China last year; the global CEO stated that after inventory destocking was completed, 2025 got off to a strong start.

Ulrica Fearn, Carlsberg Group’s Chief Financial Officer, noted during the earnings call that in 2024, the Group achieved 2.4% organic revenue growth and 6.0% organic operating profit growth. Reported revenue rose 1.9% to DKK 75.011 billion, while reported operating profit increased 2.8% to DKK 11.411 billion. The reported operating profit was negatively impacted by unfavorable exchange rates—primarily due to currency fluctuations in China, Laos, and Ukraine. Jacob pointed out that the Group’s beer volumes posted 0.2% organic growth. Other beverages recorded 1.6% organic growth, driven mainly by carbonated soft drinks in Sweden, Finland, and Laos, as well as ‘beyond beer’ products in China and Ukraine. ‘Our premium portfolio grew by 2%, with particularly strong growth in our international premium brands—including Carlsberg, Tuborg, Kronenbourg 1664 Blanc, and Brooklyn.’ Jacob noted that alcohol-free brews grew by 6%. ‘Our soft drinks portfolio grew by 1%,’ he added. ‘Driven by brands such as Feng Hua Xue Yue, ‘beyond beer’ products posted 5% volume growth.’ Notably, during the call, Carlsberg’s new CEO provided a detailed review of a series of major strategic adjustments undertaken by the Group in 2024. For instance, as Xiaoshidai previously reported, in February 2024, the company unveiled its ‘Accelerate SAIL’ strategy, setting more ambitious long-term growth targets. It aims to achieve sustained organic revenue growth at a compound annual growth rate (CAGR) of 4%–6% through 2027—and expects organic operating profit growth to exceed that level. In July 2024, Carlsberg announced the acquisition of multinational beverage company and PepsiCo bottler Britvic PLC for £3.3 billion. This acquisition raised the contribution of soft drinks to Carlsberg Group’s total volume from 16% to 30%; non-alcoholic beverages—including alcohol-free beer—now account for approximately 32% of total volume. Meanwhile, Carlsberg acquired its UK business partner for £206 million. It also acquired minority stakes in two craft breweries—one in Denmark and one in France—to reinforce its ultra-premium beer leadership in both markets. In September 2024, Carlsberg announced it would assume PepsiCo’s franchise operations in Kazakhstan and Kyrgyzstan starting in 2026. This move will double its business in Kazakhstan, elevating Kazakhstan to one of Carlsberg’s top ten markets. At the end of November 2024, following years of negotiations, Carlsberg acquired its partners’ equity interests in India and Nepal for a total of USD 744 million. Upon completion, Carlsberg gained 100% ownership of its existing Indian business and 99.94% ownership of its existing Nepalese business. Shortly thereafter, Carlsberg announced the sale of its Russian business, Baltika, generating DKK 2.3 billion in cash proceeds. Despite these substantial acquisitions beyond beer, Jacob emphasized during the call that Carlsberg remains, at its core, a brewer.

Carlsberg agrees to buy PepsiCo bottlers in Georgia and Armenia

17 hours ago

Carlsberg agreed to acquire PepsiCo's bottlers in Georgia and Armenia from Revery, expanding their partnership to 17 markets. Analysts view the deal as a strategic signal of closer ties rather than an immediate revenue impact.

reuters

2026-10-05

Carlsberg agrees to buy PepsiCo bottlers in Georgia and Armenia

Carlsberg agrees to buy PepsiCo bottlers in Georgia and Armenia

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