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Speaking to Just Drinks about the Chinese market, Carlsberg CEO Jacob Aarup-Andersen highlighted that the organization continued to perform well in the region, but said it was “not in a smart situation. . . from May, June, and then the weather brought the market. “pass with force. It has been a difficult market to exploit. “
He added that the company does not expect to “see an improvement in Chinese customer confidence in the near future. . . We hope to continue to outperform the market in China, and ultimately we won’t go so far as to replace the overall customer climate or confidence,” but what we can do is make sure we continue to dominate [the market]. “
In its half-year results published on August 13, brewer 1664 recorded a 2. 3% increase in its beer volume in Asia compared to last year, to 22. 5 million hectolitres.
Volumes for the half-year ended June 30 for its “other beverages” segment, which includes beverage brand Xixia, decreased 2. 1% year-on-year to 3. 3 million hl. Total volumes in the region increased by 1. 9% to 25. 8 million hectoliters.
When asked how the Grimbergen-based manufacturer would plan to adapt to low customer confidence in the country, Aarup-Andersen replied: “Our goal is to advertise our logo at a price. So, what’s happening is that high-end premium logos are having problems.
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“Our purpose is to make sure that we [position] our affordable premium logo in the right way on channels, to make sure that they’re in front of the customer and that they have the affordable premium logo instead of the affordable premium logo. Main logo[flow].
“A good example is that we continue to see strong expansion of Tuborg in China. [It’s] our largest logo in the world, and Tuborg is a premium product and part of that expansion of Tuborg is supported by more premium logos like 1664. . . or also Wusu Red and other logos.
“Tuborg is a clever example of how we use our logo to make sure we allow the Chinese customer to do a bit of downside trading while staying within our logo. “
Revenue decreased 1. 2% year-over-year on a reported basis and increased 4. 7% organically to 11. 6 billion Danish crowns ($1. 09 billion). Operating profits fell 2. 5% on a reported basis and rose 5. 3% organically to DKK 2. 8 billion.
As for the other regions of the group, Western Europe recorded decreases in volume, with a total decrease of 1. 7% to 21. 2 million hl.
France in particular was hit hard, with volumes falling by “high single-digit percentages” due to “bad weather in the second quarter. “
Speaking from France to Just Drinks, Aarup-Andersen said the company’s resolution to “withhold promotions” may have prevented it from expanding volumes, but under pressure it hoped to “regain some of this lost market share” in the moment. part thanks to the superior campaigns in summer.
He added: “We are excited about the long-term prospects of the French company. Kronenbourgh is a big logo around the world and has a strong [presence] in the French market, and we fully recognize that it has been a difficult year and the team has focused on stability rather than volume.
The Copenhagen-based organization recorded total sales of DKK 38. 7 billion in the first part of 2024, an increase of 2. 6% and 3. 9% in reported and biological terms compared to 2023 figures. Operating profit increased by 4. 7% in biological terms and by 1% in reported terms for DKK 6. 3 billion.
During its first half, Carlsberg also recorded a 1. 4% increase in overall biological volumes and a 1. 5% increase on a reported basis to 65. 7 million hectolitres.
The company raised its earnings expectations after the release of its first-half results and is now forecasting operating profit growth of between 4% and 6% for the full year 2024. It had previously expected growth of between 1% and 5%.
Speaking to analysts at a conference call (Aug. 14), Aarup-Andersen said, “The adjustment is due to strong commercial functionality so far this year and intelligent cargo control. “
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