Report and Accounts 1999 / 2000 - Carlsberg Group

Regional Reports
33
Icelandic market and the brewery Egill Skallagrímsson
ehf is Tuborg’s long-standing business
partner in Iceland.
Carlsberg is sold by the largest brewery in Iceland,
Sól-Víking hf, and the brand enjoys a satisfactory
position in the market.
Greenland
In Greenland, the Carlsberg and Tuborg brands
are sold by the production company Nuuk Imeq,
in which Carlsberg A/S holds a 24% stake. Tuborg
and Carlsberg are by far the leading beer brands.
Total beer sales showed a slight increase and soft
drink sales registered continued progress with a
gain of more than 7%.
Rest of Europe
United Kingdom
The beer market in the UK is still characterised by
intense competition. Consolidation among the
major brewers has continued and the growth of
independent major pub retailers has accelerated
as the traditional pattern of vertical integration,
with breweries owning the next sales link, has
been rapidly eroded.
The result is increased market shares for strong
national brands at the expense of regional and
local players. Total beer sales in the UK amounted
to almost 55.5 million hectolitres, a decline of 1.2%
and the per capita consumption totalled 101 litres.
Carlsberg-Tetley successfully completed the
final year of its restructuring plan with the commissioning
of new plant and increased capacity at
both the Northampton and Leeds breweries. The
Wrexham brewery was closed as planned in the
first quarter of 2000. The year also saw a satisfactory
outcome to the agreement with one of the
largest customers, the pub chain Punch, securing
significant branded volume for the foreseeable future.
Strong branded growth was delivered in the
retail sector which continues to take share at the
expense of the restaurant sector.
The strategy to focus on core brands and improved
operating and distribution efficiencies continues
to pay dividends. The strong brands (Carlsberg
and Tetley’s) now constitute approx. 70% of
total sales and both Carlsberg and Tetley’s have
continued to grow market share in their respective
categories. Long-term and high-profile sponsorship
deals have helped sustain momentum. Productivity
in both operations and logistics has also
continued to improve as benefits have been reaped
from the recent capital investment in both the
breweries and the new distribution network.
Although the market trend is stagnating, operating
profits were once again better than expected