Danish brewer Carlsberg A/S on Wednesday [11 May 2016] said sales fell more than expected in the first quarter due to decline in the Chinese market and foreign exchange fluctuation. Sales fell 3 percent to 13.01 billion Danish crowns ($1.99 billion), missing the 13.18 billion crowns average of 14 analyst estimates compiled by Thomson Reuters. The negative impact from foreign exchange amounted to 5 percentage points, the brewer said. Sales in Asia, one of Carlsberg’s primary growth regions, fell 0.7 percent to 3.5 billion crowns. Analysts had expected growth of more than 2 percent…Full Article: The Global Times May 2016

Key Point

  • Recently, Carlsberg decided to shut down seven breweries in eastern China and develop its market presence in western China.

ChinaAg Comments

  • In November 2015, according to a Carlsberg China representative, the company intends to close Chongqing Beer breweries in Anhui and Zhejiang provinces, eastern China.
  • In March 2013, Carlsberg offered to purchase an additional 30.3% stake in Chongqing Brewery. In November 2013, the acquisition was completed, which made the Danish brewer a controlling (60%) shareholder in CBC.
  • In 2012, Carlsberg increased its stake in CBC to 29.7%.
  • In 2008 Carlsberg acquired a 17.5% stake in Chongqing Brewery Co (CBC).
  • In 1998, China overtook Germany as the number two consumer of beer, and passed the United States as the top consumer in 2002.
  • In 1995, Carlsberg entered mainland China when it acquired a stake in a Huizhou-based (Guangdong province) brewery.
  • In 1981, Carlsberg established a brewery in Hong Kong and sold it in 1999.

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