Report and Accounts 1999 / 2000 - Carlsberg Group

Regional Reports
37
Asia, Americas, Africa
Malaysia
After the first six months, total beer sales in the
market showed a positive trend, but the stout
segment registered continued decline. However,
an increase in the excise duty on beer from 15%
to 20% as from the end of October 2000 is
expected to dampen the increase in consumption.
Carlsberg Brewery Malaysia Berhad again increased
sales within both product groups and
managed to improve its market share despite
continued, intense price competition. Consequently,
Carlsberg was the dominant beer brand
with a market share of more than 60%.
Sales for Export/Duty Free also registered substantial
growth.
During the year, Carlsberg A/S increased its
shareholding in CBMB from 27.85% to 50%.
Singapore
Although the economy in Singapore was not as
heavily affected by the economic crisis as other
countries in Asia, a positive trend has not yet
materialised in the beer market. However, Carlsberg
Marketing (Singapore) Pte. Ltd. – a whollyowned
subsidiary of Carlsberg A/S – did succeed
in increasing sales and gaining market share.
Carlsberg thus strengthened its position as
Singapore’s second largest beer brand.
Thailand
The upward trend in the Thai beer market continued
and the low-price market showed particular
progress. During the year, Carlsberg increased its
minority shareholding to 10% in both Carlsberg
Brewery (Thailand) Co., Ltd. and Beer Thai
Company Ltd. The companies strengthened their
positions as market leaders with Thailand’s most
popular beer brand, Chang, selling 7 million
hectolitres in 2000.
The market for premium beer, which includes
the Carlsberg brand, showed a weaker growth
rate and Carlsberg sales also showed moderate
growth.
The steady growth rate of the market makes it
necessary to increase production capacity in the
group further and a third brewery with a capacity
of 4.5 million hectolitres of beer is now under construction
and production is expected to start at
the end of 2001.
Nepal
Although economic growth seems to be limited,
the total market for beer experienced an increase
and both Carlsberg and Tuborg sales gained
significant market share. Both brands are produced
and distributed by the partly-owned Gorkha
Brewery Pvt. Ltd. The total market share for
Carlsberg and Tuborg thus totalled more than
60%. The development in earnings did not match
the development in sales because the market was
characterised by fierce price competition.
The brewery received Carlsberg’s Golden
Words Award in 2000.
China
Despite a rising trend in beer consumption (the
annual per capita consumption is expected to be
just below 18 litres) the sales of premium beer did
not show a similar development. In combination
with intensified price competition, this resulted in
declining sales for the Carlsberg brand. This is one
of the reasons why a co-operation arrangement
has been established between Carlsberg and the
Chinese brewery, China Tsingtao Brewery Co. Ltd.
(Tsingtao). Tsingtao has taken over 75% of the
shares in Carlsbrew Brewery (Shanghai) Ltd., and
the remaining 25% have been purchased by
Carlsberg A/S. Carlsberg Brewery Hong Kong Ltd.
will continue to produce beer for the Chinese
market from the brewery in Guangdong, and the