Table of contents

Table of contents
1.1 Rules and regulations 1
1.2 Scope and hand-in formats 1
1.3 Evaluation criteria 1
2 3 September 2011, Carlsberg Group Headquarters, Valby 2
3 Carlsberg’s History and Heritage 4
4 Boulder: The re-launch of Carlsberg Group’s flagship brand 5
5 Carlsberg Group’s Stand 7
6 Carlsberg Group’s Winning Behaviours put into action 9
7 The Strategy Wheel 10
8 Local idea with global scope - the beer list 11
9 The GloCal approach 12
10 The scrutiny of beer: Dark markets 13
11 Thirst for Beer 14
12 Carlsberg Group’s consumer segments: The right occasion and the right brand 16
13 Carlsberg Group: One of the world’s largest FMCG companies 18
14 Summing up 19
15 Perspectives on the case – Communication challenges 20
The Corporate Brand Perspective 20
The Financial Perspective 20
The Intercultural Perspective 20
The CSR Perspective 21
16 Instructions 22
17 Overview of handed-out material 23
Carlberg Breweries A/S (Director of Corporate Communications Iben Johannesen and Communications Coordinator
Maria Tejada Ljungbeck) prepared this case for ComCaseCompetition 2012 with assistance from Copenhagen
Business School (Associate Professor Karl-Heinz Pogner, Department of Intercultural Communication
and Management).

1.1 Rules and regulations
The competition stretches from Wednesday January 25th to Wednesday January 26th.
The participants have to hand in no more than 7 Power Point- slides, and an executive summary of no more
than 2500 Standard Typographic Units (STU) by 12.30 n January 26th.
1.2 Scope and hand in formats
The participants (groups of 4- 5 students) should prepare a problem-based and solution-oriented presentation
(7 slides) and a short executive summary (2500 STU) of their findings and recommendations about their
chosen research question and their chosen perspective/s concerning the case.
The 3 best presentation drafts and executive summaries will go to the final, where the finalists present their
findings and recommendations in a 15 minutes pitch for the jury, who will ask questions and discuss the solutions
for 10 minutes. The groups decide themselves how to do the presentation.
1.3 Evaluation criteria
The evaluation of the groups’ presentations will be based on the following evaluation criteria:
The participants should demonstrate that they are able to
Identify, analyze and solve a key problem
Apply theories, models and key concepts to the practical communication in a solution oriented manner
Design professional, innovative and creative – but realistic - communication strategies that are embedded in
the organizational context
Reflect upon how preconditions, chosen key concepts, methods and theories have an impact on strengths,
limitations and weaknesses of the problem solution
Communicate the results in an adequate, correct language in a coherent, convincing presentation and discussion
that fulfills rhetorical, academic and professional standards.
NOTES

1. 3 September 2011, Carlsberg Group Headquarters, Valby
The elevator doors slowly opened onto the 20th floor exposing dark mahogany floors. Mr. Jørgen Buhl Rasmussen
glanced at the Carlsberg memorabilia hanging impeccably on the walls. It was late. The sun had given
way to the moon hours ago, and there were probably still a few Carlsberg employees and their families milling
around the Carlsberg district, sipping on beers and listening to the last verses of D.A.D. It would have been
hard to be in Copenhagen today without noticing that Carlsberg was celebrating its founder, J.C. Jacobsen’s
200th birthday.
Mr. Buhl Rasmussen thought back to the speech he made in TAP1, the overwhelming cheer and positive energy
his Danish and international employees exhibited had awed him. He made his way to the window. Standing
high above the rest of Copenhagen, CEO of the Carlsberg Group, the 4th largest brewery in the world, with
over 40,000 employees on three continents, Jørgen Buhl Rasmussen’s thoughts brought him back to today’s
event.
There had been several incentives for creating such a celebration out of the 200th anniversary. Foremost it
was to honour J.C. Jacobsen, Carlsberg’s founder. Moreover 3 September was an important part of the transformation
journey that the Carlsberg Group as a global brand was on; the celebration was meant to illustrate
how Carlsberg had made a strategic decision to use the company’s heritage to look to the future and ultimately
inspire people today.
Since his promotion from Executive Vice President to President and CEO in 2007 up until quite recently, things
had been looking promising for the Carlsberg Group. Carlsberg’s transformation journey took off long before
Mr. Buhl Rasmussen had joined the corporation. Back in 1999, Carlsberg was primarily a regional brewer in
Scandinavia and the UK. By 2007 the Carlsberg Group saw itself as the market leader in Northern Europe and
parts of Eastern Europe and Asia.
In April 2008 the Carlsberg Group made the biggest acquisition ever made in Denmark by acquiring Scottish &
Newcastle. This had proven very beneficial for the company, not only acquiring S&N’s shares of French, Greek,
Chinese and Vietnamese operations, the Carlsberg Group had also gained sole ownership of Baltika Breweries,
the biggest FMCG (Fast Moving Consumer Goods) company and the biggest brewer in Russia. In 2008 the
media had declared Carlsberg Group as having entered the super league and the venture with Baltika Breweries
had strengthened Carlsberg’s position on the global beer market considerably.
Things continued to look increasingly promising as the newly acquired local markets and brands were integrated
into Carlsberg, creating what was now the Carlsberg Group – 140 markets and 500 brands under one roof.
The Carlsberg Group controlled 43% of total volume in Northern and Western Europe, 41% of total volume in
Eastern Europe, and 16% in Asia with projections to improve competitiveness and earnings, ensure profitable
growth, and build growth platforms respectively.
As the Carlsberg Group had grown to include diverse brewers and brands from around the world, Mr. Buhl
Rasmussen and his team became increasingly aware of the importance to acknowledge that each of these
companies represented its own corporate culture, regional personality and point of market differentiation
NOTES

and it was becoming crucial to unify these companies as the Carlsberg Group. Among employees there still
seemed to exist a divide between countries, markets and cultures, and with projections for more growth, as
well as further expansions and acquisitions it was becoming imperative for the Carlsberg Group to communicate
an authentic and inspiring Group story, while still maintaining a “GloCal” (Global and Local) approach,
and retaining regional and local brand value. Carlsberg Group faced the challenge of what seemed to be a lack
of cultural communication and understanding between the various markets in which the global brewery exists.
This included cultural challenges among old, mature markets and new emerging beer markets, as well as
perhaps a deficiency in clear communication regarding how things are done in different parts of the world. Beyond
this many long-established breweries that had been bought up by Carlsberg Group such as Baltika and
Brasseries Kronenbourg possessed traditions and a certain pride that could contest some of the procedures
implemented by the Carlsberg Group on a whole. This said, it would be a lot easier said than done to execute
the actual implementation of the GloCal approach.
Overlooking the old brewery district in Valby, Jørgen Buhl Rasmussen thought back to the current trouble in
Russia. The Russian beer market was negatively impacted by significant duty increase in 2010 and a challenging
macroeconomic environment, and it had only been a few weeks since the Carlsberg Group’s 2011 Quarter
2 (Q2) results had been released on 17 August. Q2 had not reaped the results that the company had expected;
Eastern Europe came in below expectations, with a disappointing Russian market performance and although
the Northern and Western Europe regions and Asia had shown positive performance with profit improvements
and market growth, the decline in Russia was continuing to impact the Carlsberg Group negatively. Despite the
improved macroeconomic conditions in Russia, local consumers had not yet adjusted to substantial price increases
and the weather conditions in Q2 had also been unusually poor. Baltika Breweries, Carlsberg’s Russian
conglomerate that stood behind the best selling beer in Europe - Baltika, had simply not been able to match
its own recognized name and Carlsberg Group
Sitting down slowly, Mr. Buhl Rasmussen was once again reminded of J.C. Jacobsen’s birthday today. The
sun had beat down on the Carlsberg district. Children and adults alike had enjoyed the warm temperatures
that are unusual to Copenhagen in September. The area buzzed with activity, over 40,000 people had been
expected to show up to celebrate J.C. Jacobsen’s birthday. The celebration had been the perfect example of
the Carlsberg Group drawing from its history and heritage, and ultimately inspiring employees and consumers
alike.
Mr. Buhl Rasmussen and his team would have to use today as a trampoline; the energy that had been so
clearly reflected in the Carlsberg employees and the spirit that could be felt all around the Carlsberg district
was the exact message the Carlsberg Group needed to relay across all 140 markets.
NOTES

2. Carlsberg’s History and Heritage
Carlsberg’s rich heritage in scientific discoveries dates back to 1845 when a young J.C. Jacobsen (J.C.) made his
way back from Munich to Copenhagen in a horse drawn stagecoach. Gently nestled on his knee lay a hatbox
that contained something that has since revolutionized the brewing industry; a special yeast from a brewery in
Germany. The living yeast survived the journey, and it was not long before J.C. was ready to produce 300 barrels
of Bavarian lager beer which quickly proved very popular. Perched on a hill in Valby J.C. Jacobsen founded
his brewery in 1847, calling it Carlsberg in honour of his only son Carl and the “mountain” (“bjerg” in Danish) on
which the brewery lay.
J.C. was not one to keep innovations to himself and it did not take long for Carlsberg’s founder to realize the
important connection between natural science and industrial innovation. A man that demanded quality, J.C.
founded the Carlsberg Laboratory in 1875 as an independent institution. Nowadays the Carlsberg Laboratory
still makes outstanding scientific discoveries which continue to benefit and transform the beverage industry. In
1883 Scientist Emil Christian Hansen developed a method for propagating pure yeast, named Saccharomyces
Carlsbergensis. Before that impurities in yeast meant that beer would often turn sour during production or
transportation.
The clean yeast was given freely to the world, and is still used in every mass-produced lager beer today. J.C.’s
inventions in the art of beer production and his disposition for sharing his and his colleagues’ scientific discoveries
with the world have laid the cornerstone of the modern brewing industry.
J.C.’s son Carl Jacobsen would go on to be just as talented a brewer as his father. A patron of art, Carl
amassed a huge art collection as well as building two museums to house the paintings. One of the museums,
the Ny Carlsberg Glyptotek in Copenhagen is still open to the public today. Much like his father, Carl was
also armed with a deep passion and interest in the art of beer making. In 1903 Carlsberg and Tuborg’s United
Breweries signed a formal agreement of cooperation that was to last 100 years, the “1903-agreement” would
ensure that although the breweries were still to run independently and in competition, it was agreed that they
would share all profits and losses, and participate equally in each other’s investments in new installations.
In 1882 J.C. Jacobsen carved the ‘golden words’ into the stonework of the original Carlsberg brewery in 1882.
The mision and vision of those days:
“In working the brewery it should be a constant purpose, regardless of immediate gain, to develop the art of
making beer to the greatest possible degree of perfection so that this brewery as well as its products may ever
stand out as a model, and through their example, assist in keeping beer brewing in this country at a high and
honourable level.” J.C. Jacobsen, Carlsberg’s Founder.
NOTES

3. Boulder: The re-launch of Carlsberg Group’s flagship brand
5 April 2011. A day 40,000 employees in over 150 countries across the globe had been anticipating for months.
Today the Carlsberg Group was launching a new brand proposition for its flagship beer Carlsberg, rolled out
across all markets simultaneously in what was the company’s largest international makeover to date. This
was no small feat; a global re-launch of the iconic Carlsberg brand would not only see the removal of the
company’s globally recognized tagline “Probably the best beer in the world” replaced with the new, modernized
proposition, “That calls for a Carlsberg”, but the international transformation would be unveiling a package
that would bring changes to both the brand proposition and Carlsberg’s visual identity.
Standing on the stage of Carlsberg’s TAP2, Khalil Younes, Senior Vice President of Group Sales, Marketing and
Innovation (GSMI) welcomed Carlsberg’s employees to what was internally referred to as C-Day: “Carlsberg
is a fantastic brand, but the brand has even more potential that can be cultivated. Now, we also want to add
essence to our brand. It is time we take Carlsberg to the next level,” Mr. Younes paused before revealing to
thousands of employees Carlsberg’s largest global re-launch in the history of the company.
“That calls for a Carlsberg”
Consumers will no longer have to wonder if Carlsberg is probably the best. From now on a new tagline will be
on the tip of beer drinkers’ tongues. “That calls for a Carlsberg” is Carlsberg’s modernized tagline, a proposition
that aims to celebrate Carlsberg’s heritage and values, while connecting with today’s generation of active beer
drinkers. The new positioning encourages consumers to ‘step up and do the right thing’, subsequently gratifying
themselves with a Carlsberg for their good deeds.
The transformation of Carlsberg’s classic tagline falls closely in line with the revolution of consumers today.
Consumer behaviour is significantly moulded by information, technology, travel and social media, all available
with the swipe of a finger. Young, independent adults today do not wait for things to happen, they go out and
make them happen. They are prepared to take risks, to explore and accept new opportunities and challenges,
while maintaining courage and integrity in the way they lead their lives. They are prepared to step up and do
the right thing.
NOTES

4. Carlsberg Group’s Stand
In 2010 the Carlsberg Group adopted a new global vision that attempts to capture the essence of the Group,
the unique identity, personality and diversity of the Group across cultures. Opposite to the product brands,
Carlsberg created “The Stand” – something the Group has chosen to use as a definition for what the global
brewer stands for. The Stand, a dictum which unites employees across markets, regions and cultures, is so to
speak an updated version of the ‘golden words’ that J.C. Jacobsen had carved into the stonework of the original
Carlsberg brewery in 1882, and the motto aims to take the essence of the Carlsberg Group’s identity and
render it into 91 words.
The Stand touches upon three topics:
• The always burning passion, thirsting for better
• Strength in unity. We brand as many, but stand as one
• The ambition and courage to raise the bar
According to Michael Kreutzfeldt, Company Branding Manager, the establishment of The Stand came from
employees lacking a clear message of what unites the Group on a global level. He realized that no matter
which region or department he and his team asked for input from, the same basic traits kept popping up. In
order to express and reflect the people behind the Carlsberg Group, The Stand was formed.
Carlsberg has defined The Stand as a vision that is increasingly relevant to the Carlsberg Group today and
shows that ‘we never settle, but always thirst for better’. Input has been used from various long-established
brands around the world so that every Carlsberg employee, regardless of where they come from or where they
work, can recognize a little of their company’s past and present in Carlsberg Group’s Stand. Beyond connecting
Carlsberg employees across the globe, The Stand also aims to show what the Carlsberg Group aspires for; a
guide to target setting, making decisions and people development.
“Our stakeholders are increasingly looking at what a company stands for when they make decisions,” explains
Anne-Marie Skov, Senior Vice President, Communications & CSR. “We want an association with Carlsberg
Group to add extra value to the products we sell and the companies we are. The Stand gives us a common
way to express our identity whether we want to influence consumers’ perceptions, convince employees that we
are best place to work for or make new deals with customers and partners.”
NOTES

NOTES

5. Carlsberg Group’s Winning Behaviours put into action
The Stand tells what the Carlsberg Group stand for as a company. As a supplement - you can call it the values
- the Carlsberg Group has the five Winning Behaviours; a set of action-oriented principles of best behaviours
that provides employees across the Group guidance on how to work with colleagues and customer and drive a
performance culture.
The Winning Behaviours pull the Carlsberg Group as a company together across national borders and functions
as well as promoting commitment and engagement. All companies within the Group have implemented
the Winning Behaviours as guiding principles. The five iconic characters hang in the production hall in
Carlsberg Kazakhstan; Carlsberg Malaysia has rolled out a full package of workshops, T-shirts and celebrations;
and around the brewery in Latvia you find the icons sprayed as graffiti on the wall.
The five Behaviours are the same on all three continents where Carlsberg is present, but as markets sometimes
differ significantly the approach and actual way of implementing them may be adjusted locally.
What sets us apart from our competitors is that we strive to find the right balance between working closely
together at a global level whilst allowing local brands and initiatives to flourish.
The Carlsberg Group Winning Behaviours
Together we are stronger.
We want to win.
Our consumers and customers are at the heart of every decision we make.
We are each empowered to make a difference.
We are engaged with society.
NOTES

6. The Strategy Wheel
The Carlsberg Group’s Strategy Wheel was developed after the formulation of the Stand and the Winning
Behaviours. Five core levers form the wheel, of which the core concepts are cascaded down to all companies
within the Group. The levers must support the Carlsberg Group’s ambition of being the fastest growing global
beer company - measured in terms of average organic growth in net sales and growth in operating profit over
a three year period.
In total the Strategy Wheel, The Stand and the Winning Behaviours are the mission, vision and values of the
company and the strategy for how to drive the business forward:
• The Stand tells you what the company stands for
• The Winning Behaviours: how the employees must act in relation to colleagues, customers and society
• The Ambition: what the company aspires to be
• The Strategy is the approach and priorities on how to run the business
See the full strategy wheel at http://www.carlsberggroup.com/Company/Strategy/Pages/Strategy.aspx
7. Local idea with global scope – the beer list
Carlsberg Group has marketed a beer list to increase beer sales in bars and restaurants, an idea that was originally
developed by Carlsberg in the UK, Denmark, Finland and Switzerland respectively. The idea was adopted
by GSMI (Group Sales, Marketing and Innovation), adapted and improved based on best practice from other
markets so that the beer list could ultimately be used by the entire Carlsberg Group. The beer list enables
consumers to choose exactly what to drink with their meal and gives them a chance to try something different.
The beer list is a prime example of Carlsberg Group’s Winning Behaviours being put into action, with GSMI
adapting best practices from four different countries.
Carlsberg Group is a collection of recipes, with one common ingredient: the passion for great.
2 September 2011. The morning sun glinted through the glass windows of the Winter Garden, inside ‘The
Academy’, an Italian inspired villa that had once been the home of J.C. Jacobsen. Vita Clausen, Brand PR
Manager paced nervously back and forth, she had been eagerly anticipating this day for months. Journalists
from across the globe had been arriving to Copenhagen in streams over the past couple of days to take part in
Carlsberg’s biggest celebration of the company’s heritage to date - J.C. Jacobsen’s 200th birthday.
After a walk around the Carlsberg grounds, where J.C. Jacobsen’s home, garden, and the Jutland dray horses
would be displayed, lunch was to be served at the Carlsberg Museum. This would be no ordinary meal, and
Vita smiled at the thought of Carlsberg Brewmaster Morten Ibsen’s enthusiasm at today’s arrangement.
Morten had arranged for the journalists to be served a traditional Danish lunch, under which he would share
the secrets of pairing ales and pilsners with a gourmet meal, ensuring the curious writers learned how to
NOTES

match food with the perfect beer flavour.
Morten commenced the meal by inviting the journalists to test Carlsberg’s international flagship brand, the
Carlsberg Pilsner. After the Pilsner, clearly a favourite of most of the male journalists, Morten introduced the
reporters to Velvet Ale, which reminds much more of champagne than beer.
“To appropriately pair beer with a meal the ingredients in the food must be harmonized with the richness of
the ale,” the Brewmaster explained. The journalists nodded their heads appreciatively, all the while oohing and
aahing at the new found knowledge that beer really was an appropriate accompaniment to a meal, just as
wine has been for centuries.
Morten’s beer and food pairing was another example of Carlsberg Group’s Winning Behaviours being put into
action; putting consumers and customers at the heart of every decision Carlsberg Group makes.
8. The GloCal Approach
Being a diverse company that operates in more than 150 countries makes it imperative for the Carlsberg Group
to recognize that each company is confronted with different challenges that are individually based on the
countries, societies and cultures in which they operate. Carlsberg Group has chosen to take a ‘GloCal’ approach
in order to come to terms with the cultural differences that plague a worldwide corporation and to communicate
an authentic and inspiring Group story while finding the right balance between working closely together
on a GLObal level and allowing loCAL brands and initiatives to flourish.
‘We work together on a global level to develop our strategic approach but acknowledge the local diversity
within our operations’.
The GloCal approach seeks to engage employees across all markets and functions while aligning and inspiring
stakeholders. Finding the right GloCal balance in a matrix structure is the key to Carlsberg’s success in activating
and developing local markets while still increasing the flagship Carlsberg brand’s presence on the global
market.
Carlsberg Group expects that the re-branding of the flagship Carlsberg beer brand will help distinguish between
the Company Brand and the Product Brand, which at times can be indistinguishable for the company’s
stakeholders and many employees today. The distinction may seem unimportant in Denmark, but the Danish
market only contributes to about 3% of Carlsberg’s total volume earnings. With more than 40% of Carlsberg
Group’s volumes based on beer sales in Eastern Europe (particularly Russia), where the Baltika brand is far
more recognized than Carlsberg, both the relevance of the flagship Carlsberg product and its heritage are less
evident to consumers and Carlsberg Group employees.
NOTES

9. The scrutiny of beer – dark markets
We are back in Valby, the CEO Jørgen Buhl Rasmussen is still sitting at his desk and his thoughts have now
fallen on the Carlsberg Group’s long range of alcoholic products which have been subject to rough scrutiny
lately. Stricter legislations on the sales and marketing of alcoholic drinks, consumers’ rising demands for transparency
and healthier products, more efficient and innovative competitors, an ever-watching media and the
nature of the financial market are all factors contributing to the Carlsberg Group’s need to seriously reassess
the external message that the brewery sends to customers and consumers.
As a worldwide brewer and beer producer, the Carlsberg Group faces the challenge of increasing dark markets
within the regions where the company operates. Dark markets are countries and districts where it is partly or
completely forbidden to promote alcoholic drinks in the media. In many Nordic countries there are restrictions
and prohibitions on alcohol advertisements while some countries only allow alcoholic commercials in allocated
time slots. Beyond advertising the Carlsberg Group is also increasingly experiencing a rise in restrictions on
sales of alcohol within some of its largest and most important markets, such as Russia.
The role of social media on dark markets
The revolution of social media is something that the Carlsberg Group will increasingly place focus on as it
becomes more and more important to reach consumers through the channels they use the most (such as
Facebook, YouTube and Twitter). In the dark markets where Carlsberg Group is present social media is one of
the only ways to reach consumers (especially younger generations) without official advertising. In order for
Carlsberg Group to expand and reach the consumers the company chooses to target, social media channels
which often contain much user-generated content are vital. By creating viral commercials such the most recent
‘Carlsberg stunt with bikers in a cinema’ released by Carlsberg Belgium, a scenario which depicts several couples
entering a movie theatre to be greeted by a room filled with not-so friendly gentlemen bikers has taken
the internet by storm. If the couples dare to mosey through the bikers and take their seats the whole theatre
celebrates with a Carlsberg beer and the slogan ‘That calls for a Carlsberg’. The video has generated an audience
of almost 10 million viewers to date since its release on 29 September 2011.
10. Thirst for Beer
The Carlsberg Group’s ‘Thirst for Beer’ strategy is one of the ways Carlsberg hopes to improve the image and
value of beer, something that is increasingly important for the company today. Carlsberg has defined the
‘Thirst for Beer’ as a cross-border team effort with three major practice areas: markets and consumer behaviour,
policies and fair excise taxes along with commercial freedom, and people as ambassadors for beer. The
strategy simultaneously supports category growth and profitability while safe-guarding the Group’s license to
operate. The approach is executed by supporting the external image of beer while placing emphasis on beer’s
refreshing and social character, the natural and healthy qualities of the beverage and its cultural heritage.
NOTES

Responsible drinking
Responsible drinking policies are part of the Group’s world-wide Corporate Social Responsibility program. An
initiative to ensure conscientious drinking and consumer awareness is launched by Carlsberg’s Group Communications,
and it focuses on 4 areas that are vital to the beer and drinking industry:
• Drunk driving
• Under-age drinking
• Binge drinking
• Moderate consumption
Campaigns can be seen from across Carlsberg Group’s regions. In 2007 Finnish Sinebrychoff took part in an
award winning advertising campaign targeted at the binge drinking culture and underage drinking in Finland.
Using blunt, straight forward language and arresting imagery, the campaign highlighted the problems of binge
and under-age drinking in a society where it is accepted to binge drink as part of the youth culture.
“We are proud that millions of consumers enjoy our products. To help them make sensible choices on alcohol
consumption we develop local responsible drinking campaigns and ensure we market our products in a
responsible way.” Khalil Younes, Senior Vice President, Group Sales, Marketing and Innovations
Corporate Social Responsibility
Beyond promoting responsible drinking Carlsberg Group is integrating CSR throughout the company’s value
chain by placing focus on developing new kinds of barley that are more resistant to climate change and
finding innovative brewing methods to reduce energy and water consumption in breweries around the Group.
The Carlsberg Group has defined its intentions to bring CSR aspects that are relevant to the company and its
stakeholders closer to business plans and decisions. Integrating CSR into the company’s operations will help
Carlsberg reduce costs, manage risks, minimise environmental impact, attract and retain employees, as well as
strengthen the brand and business overall. Carlsberg Group believes that CSR is the compass that will ensure
the company continues to grow in a responsible way, and new targets have therefore been set for 2013 in each
of the CSR areas that Carlsberg Group has chosen to focus on.
Carlsberg Group is a diverse global brewer that operates in more than 150 countries and each local company is
faced with different challenges and issues based on the countries and societies in which they operate. In terms
of CSR the Carlsberg Group has chosen to take a GloCal approach and work together on a global level to develop
a strategic approach while still acknowledging local diversity within the company’s operations. Local CSR
champions ensure that Carlsberg Group’s strategy is suited to local circumstances.
“Our strategy to implement CSR reflects our GloCal way of thinking. We work together globally to identify our
direction and priorities and integrate our strategy in our local business activities to ensure we grow in a responsible
way.” Anne-Marie Skov, Senior Vice-President, Communications & CSR
NOTES

11. Carlsberg Group’s consumer segments – The right occasion and the right
brand
Carlsberg Group’s brand portfolio strives to maximize the value of each brand by having products that fulfil
a variety of consumer needs and occasions. The dynamics of beer consumption vary significantly across the
world; in mature Western European markets volumes are generally stable or modestly declining while less
mature or emerging beer markets such as Asia and Eastern Europe have seen stable growth over the past
years, with some countries showing rapid growth rates. Beer trends play an imperative role in the Carlsberg
Group’s continuous growth, and it is evident that on emerging and growth markets developments point towards
an increase in the substitution of traditional local spirits with beer, a tendency that is driven by rising
incomes and increasing responsiveness towards brands and marketing. Younger generations’ demographic
shifts towards urbanization and increasing westernization have also supported the shift towards beer.
Focus on female consumers
The Carlsberg Group has to rise to the challenge of meeting a constantly rising number and category of consumers
and while the Group’s main consumer group has for a long time focused on men, which is reflected in
the many sponsorships related to European football. Over the past couple of years it has become increasingly
important to focus on the female consumer market.
In 2010 the Carlsberg Group’s Investor magazine ‘News’ wrote that women buy or influence the purchase of
80% of all consumer goods as well as accounting for more than 37% of alcohol consumption. Surveys have
also shown that Danish women aged 18-24 consume just as much beer as males but then switch to wine as
they get older.
2009 saw Jeanette Elgaard Carlsson join Carlsberg’s Group Innovation department as Innovation Platform
Director, and as her first assignment she was told to focus on this previously underserved segment of women.
Beer has often been regarded by women as unglamorous and unappealing, and although the Carlsberg
Group’s main products and primary innovation efforts will continue to be within the beer category, in the future
the Carlsberg Group will increasingly place emphasis on women. Jeanette Elgaard Carlsson explains why:
“Women are a big untapped opportunity for Carlsberg. Today, 80 percent of our global volume is consumed
by men. Yet half of the population is women. And we know that women are becoming increasingly independent
around the world. They are working more and having families later. Many of them are spending more time
enjoying themselves with friends in cafes, bars and restaurants, but Carlsberg hasn’t really focused on women
before now. In fact, we didn’t really have any products that met the needs of women until we got Eve.”
The release of Copen*hagen was one of Carlsberg Group’s bids at meeting female consumers’ demands, and a
new beer marketed at the modern woman aged between 23 and 35 years was met with mass media coverage
and rising sales. Carlsberg continuously looks to expand beyond existing brands and consumer groups, looking
for profitable opportunities to strengthen the portfolio both within beer and adjacent beverage segments.
NOTES

The successful launch of Somersby Cider in Norway and Denmark is another example of a premium product
development outside the beer category aimed at women. Another illustration is Eve, a malt-based premium
drink that bridges brewing technology and consumer insights, delivering a refreshing drink with a taste and
look that is a far cry from beer.
12. Carlsberg Group: One of the world’s largest FMCG companies
Carlsberg Group is one of the globe’s fastest growing FMCG (fast moving consumer goods) companies with a
large portfolio of beer and soft drinks brands, including the flagship Carlsberg- one of the world’s best known
international beers. While Carlsberg Group’s core products are beer, the corporation also produces and distributes
mineral water, soft drinks and other non-alcoholic drinks. Consumers are at the forefront of every decision
Carlsberg Group makes, and the company aims to iconize Carlsberg’s corporate brand and grow through a
varied portfolio of discount, mainstream, international premium and strong local brands.
Business Standardisation Programme
Breweries naturally experience an increase in production volumes due to FMCG goods’ short shelf life. Supplying
FMCG products requires an extensive distribution network and room for high stock turnover, in turn making
logistics and supporting processes of the value chain extremely crucial to the ultimate success of the company.
Carlsberg has an ambition to be the fastest growing global beer company in the world, and the company’s
main business priority is based on two central drivers: increasing earnings by reducing costs and winning local
market shares.
In 2005 the Carlsberg Group launched the Business Standardisation Programme (BSP), a key lever for standardizing
business processes, which will ultimately make employees’ work across the group faster, smarter and
leaner. Faster because successes will be optimized; smarter because best practice can be shared across countries
and leaner because focus can be placed on value adding activities and reducing costs through economies
of scale. BSP was a logical and necessary step for Carlsberg and today it is one of the largest transformation
programmes ever launched in the Group.
As the reaches of such a global business need to be consolidated and uniformed, the plan captures value
from the benefits of standardization, while at the same time enabling local businesses to respond to local
markets as well as spend more time and resources on innovation and business development. The implementation
of BSP has to be driven locally to succeed, ultimately requiring a high degree of local involvement and
ownership. BSP is built around Carlsberg’s core supporting and enabling process and it focuses on increasing
Carlsberg’s earnings by reducing costs while becoming more efficient and winning market shares through constant
engagement with consumers and customers.
NOTES

13. Summing up
Mr. Jørgen Buhl Rasmussen looked back at his desk, jerked back from his thoughts by the ring of his office
phone. Ignoring the buzzing, he could not help but smile; so much power, so much passion was embedded in
the spirit of Carlsberg. The stories and heritage rooted in the buildings below him were second to none in a
way many companies would envy. Many challenges lay ahead, but if the company got the fundamental roots
right and could unite around that, the short term obstacles could be dealt with.
Rising slowly, Mr. Buhl Rasmussen decided it was time to rest his mind and go home. Today’s celebration had
given him the confidence he and the Corporate Communications team needed, and the CEO was positive that
this was just one of many milestones that would lay the brickwork for the Carlsberg Group’s future.
14. Perspectives on the case – Balancing one corporate brand with multiple
product brands
An analysis of Carlsberg Group’s situation and the challenges that the company faces can be looked at from
several standpoints. The following describes a variety of perspectives and questions which have been prepared
to give you ideas and inspiration to discover, formulate and investigate your own research question.
The Corporate Brand Perspective
The Carlsberg Group’s subsidiaries exist across a variety of countries and regions; all with strong traditions and
cultures and many with hundreds of years of history behind them. Brasseries Kronenbourg in France dates
back to 1664, Finnish Sinebrychoff is the oldest brewery in Scandinavia and Baltika Breweries, the biggest
FMCG company in Russia, just turned 20 years.
The Carlsberg Group and the Carlsberg beer carry the same name and logo and are therefore hard to separate.
In 2011 the Carlsberg beer, was re-launched to fit the modern, global world, and the link and leverage between
the two must be clarified.
• How should the top executives from Carlsberg Group Headquarters and Group Communications balance
the need for a coherent global corporate brand and local or regional needs for a relevant corporate
position tailored for the local market? What stakeholders should be prioritised and what messages will
support the chosen balance?
• What role should the Carlsberg beer play in the corporate story, taken into account that the importance of
the Carlsberg beer varies from market to market. Where should the product brand and the corporate brand
align and where should they part? What role should local power brands play?
NOTES

The Financial Perspective
Carlsberg Group is the undisputed market leader in Northern Europe, and also holds the number one position in Eastern
Europe. In 2010 Eastern Europe accounted for 45% of operating profit, but 2011 has seen a decline in the Carlsberg
Group’s profit margins, especially within Russia and Eastern Europe in Q2 and Q3.
• In times of economic uncertainty, such as the one Carlsberg Group is currently facing in Russia, how can communication
help restore the Group’s reputation in the financial community? How can communication help turn Carlsberg
Group’s financial struggles into a benefit?
• Financial communication is serious and must be highly trustworthy. Hence social media is not a channel used
much. In what way can that be changed and what risks should be taken into consideration?
The Intercultural Perspective
Over 40,000 people on three continents work for the Carlsberg Group. They speak Chinese, Russian, Vietnamese,
French, German and some speak English. Obviously a company of the size of the Carlsberg Group faces the dilemma of
a complex and diverse organisation.
Being a global FMCG (Fast Moving Consumer Goods) company one needs to standardise processes and systems and
one must be able to work together across borders. That has to correspond to employees taking pride in working for the
company, going that extra mile to improve company performance.
• Should corporate brand elements vary in different parts of the world to account for cultural differences? What are
the benefits and risks of having one global uniform corporate brand versus differentiated corporate brands on local
or regional level? What direction should the Carlsberg Group choose?
• What should the role of the CEO play when it comes to bridging cultural differences? How, what and where should
the CEO communicate?
• “What are you proud of when telling about your workplace?” What elements of the company and the corporate
story can employees at all levels, across the globe associate with? How can Group Communications in Headquarters
support this pride, and how do you take the different cultural elements into perspective?
The CSR Perspective
CSR is an integrated part of the way the Carlsberg Group does business. Consumers expect the company behind their
favourite beer to take a social and environmental stand, employees want to work for a company they can be proud of
and legislators want responsible advertising. How can you survive without a stand on CSR?
• The CSR story can be told as part of the corporate story and/or be communicated by the individual product brands.
How can CSR leverage the corporate and the product brands, what stories should be told by whom and what are
the benefits and risks?
• Th e beer category faces dark markets and restrictions, and the health risk of alcohol abuse is indisputable. Responsible
Drinking campaigns have been part of advertising for many years. How do you re-think the way Responsible
Drinking is used by the corporate brand?
15. Instructions
Choose a perspective, either from the list above or your own perspective on the case.
• Choose a specific Research Question within the topic area of Carlsberg’s Corporate Branding and balancing the
Global and the Local according to your own perspectives.
• Prepare a problem-based and solution-oriented presentation and a short executive summary (cf. Rules and regulations;
Scope and hand in formats, and Evaluation criteria).