Report and Accounts 1999 / 2000 - Carlsberg Group

Regional Reports
39
of Tuborg ceased at the turn of the year because
of insufficient sales volumes.
The Americas
Total beer consumption in Canada remained
unchanged and per capita consumption
amounted to 65 litres. However, imports continued
to show strong growth at the expense of local
production. The sales of Carlsberg, which is
brewed and distributed in Canada through a
licence agreement with The Labatt Brewing
Company Limited, again showed satisfactory
growth unlike the major part of the local brands.
Considering this trend, results were satisfactory.
The strongest growth was registered in the
draught beer segment. An upward trend was also
recorded for sales of bottles and cans, although
slightly weaker than expected.
In the USA, the total sales of beer again increased
slightly and imported beer registered
strong growth. The sales of Carlsberg remained
unchanged and must be characterised as unsatisfactory.
Sale and distribution of Carlsberg in the
United States is handled in co-operation with
Labatt USA L.L.C.
Carlsberg sales in Brazil showed a considerably
higher growth rate than the general trend in the
beer market. The results are satisfactory, but the
growth potential for the brand is still substantial in
a market with negligible import of premium
brands. In Brazil, Carlsberg is produced under licence
and distributed by AMBEV – which became
the fourth largest brewing group in the world following
the regulatory approval of the merger between
Brahma and Antarctica in March 2000.
Exports
Total export business covers about 60 markets
and showed a fair increase although exports to
the markets in Eastern Europe, Latin America and
Africa had not yet been fully re-established after
the economic crisis in those areas.
Tuborg sales to Canada and Africa and Carlsberg
sales to the Caribbean, Russia and the Gulf
States developed positively. During the year, several
new export projects were launched, including
the introduction of Carlsberg in Sierra Leone and
St. Marten and the introduction of Tuborg in
Nigeria and Malta. In addition, activities were intensified
in Austria, the Netherlands, The Balkans
and The Canary Islands and other markets.
Following a period of sharp decline after the EU
decision of 1 July 1999 prohibiting Duty Free
take-home sales on plane and ferry lines within
the EU, the market showed renewed growth. One
of the reasons for this upward trend is the large
differences in excise duties and VAT rates, particularly
between the member countries in
Northern Europe.
Export of the English brands from Carlsberg-
Tetley’s breweries showed good progress. The
core brand Tetley’s registered continued strong
growth, particularly in priority markets such as the
USA, Canada and Spain. This year saw the introduction
of Tetley’s in a number of markets, including
Malaysia, China and the Gulf States and
the brand is now distributed in more than 20
countries. Export of Skol Super was resumed
during the year and fairly substantial progress was
achieved in Russia and other markets.
Other markets
Carlsberg is also produced and sold in Sri Lanka
and Malawi by local breweries partly owned by
Carlsberg and in The Philippines, Indonesia and
Egypt on the basis of licence agreements. Similar
Tuborg licence agreements exist in Cameroon and
The Ivory Coast.
Additional information
On 4 May 2000, representatives from the European
Commission paid a visit to Carlsberg A/S
looking for evidence of agreements or collusion
with other major breweries regarding sharing of
beer markets. Carlsberg has nothing to hide and
has given the authorities full access to all papers.