Report and Accounts 1999 / 2000 - Carlsberg Group

38
Regional Reports
new joint venture will improve utilisation capacity.
The agreement with Tsingtao is also expected to
entail co-operation initiatives outside China. The
Chinese authorities have approved the agreement.
The sales of the Group’s local brand in southern
China, Dragon 8, continued to develop positively.
Hong Kong
Economic growth in Hong Kong was higher this
year compared to the previous years. This was
also reflected to some extent in the level of
consumption. Total consumption increased, as did
the sales of Carlsberg. Carlsberg maintained its
market share and even achieved a slightly rising
trend despite intensified competition. The sales of
Carlsberg’s 33-cl bottle showed particular
improvement and general progress was achieved
in sales to supermarket chains and the restaurant
sector. However, a slight decline was registered
for draught beer because of declining international
business activities in Hong Kong.
In addition to the Carlsberg brand, Carlsberg
Hong Kong Ltd. supplies a number of complementary
beer brands and a portfolio of Shandy
products.
Japan
The stagnating trend for total beer sales in Japan
continued and per capita consumption totalled 50
litres. However, this development conceals a
marked shift from ordinary beer to the special
beer type called ”Happoushu”, which is a less
expensive product because it contains less
alcohol and is subject to lower excise duties. This
year, after only a few years in the market, Happoushu’s
market share amounted to about 22% of
total beer sales. Carlsberg again strengthened its
market share in the otherwise declining international
segment and enhanced its position as the
leading international draught beer brand. Carlsberg’s
partner in Japan is Suntory Limited.
South Korea
The Korean beer market has been stagnating in
recent years with a per capita consumption of 34
litres.
The sales of the premium brand Carlsberg,
which is brewed by the partner Hite Brewery Co.
Ltd. in South Korea, did not reach a satisfactory
level and a decline was registered in this stagnating
segment, partly because of customer loyalty
towards local brands.
Over the past years, Hite Brewery has achieved
an increase in its market share in a competitive
market dominated by two suppliers.
Carlsberg A/S holds about 13% of the shares in
Hite Brewery Co. Ltd. This stake can be increased
to approx. 18 to 20% through the conversion of
bonds into share capital.
Vietnam
The development in the Vietnamese beer market
stagnated at a substantially lower level than the
average per capita beer consumption in the rest of
Asia. However, beer consumption is expected to
increase as the economic situation improves.
Carlsberg is produced by South-East Asia
Brewery Ltd. in Hanoi and the sales of the brand
also showed a stagnating trend whereas the local
brand Halida experienced a slight increase.
Hue Brewery Ltd. achieved a positive development
in the sales of the Huda brand. Production