Thirsty Russians lift Carlsberg sales

Danish brewer Carlsberg said on Wednesday that it had "a solid start to the year" as quarterly revenue edged up two percent in local currencies, helped by gains in the troubled Russian market.

Thirsty Russians lift Carlsberg sales
An analyst said Carlsberg's statement was "what everyone has been looking for." Photo: Carlsberg Group
Organic revenue in the first three months of the year rose two percent to 13.47 billion kroner (€1.81 billion, $2.06 billion) but slid three percent to 13 billion kroner when taking into account negative currency effects.
Declining volumes in China were partly offset by a 20 percent rise in revenue in Eastern Europe, where volumes as well as sales of more expensive brands were higher.
“The Russian volume growth was mainly due to easy comparisons with last year when we took significant measures to reduce stock levels at distributors,” the company said in a statement.
Renowned for their hard-drinking habits, Russians in recent years have started cutting down on booze as the government has tightened controls to curb rampant alcoholism.
The crackdown has hit sales at Carlsberg's Baltika brewery — the largest beer maker in Russia — along with the impact of lower oil prices and the Ukraine crisis on the country's economy.
Wednesday's trading statement was a sign that “Carlsberg has fared better than their competitors in Russia,” Alm. Brand Markets analyst Michael Friis Jorgensen told news agency Ritzau.
“It is a positive signal and that is what everyone has been looking for,” he added.
Revenue in Western Europe, which accounts for two thirds of revenue, fell by three percent organically after British supermarket chain Tesco pulled Carlsberg products from its shelves as part of a major cull of the number of brands it sells.
In November the Danish group said it was cutting 2,000 white-collar jobs, or around 15 percent of its workforce, affecting primarily Russia, China and Britain.
Carlsberg, which did not disclose a quarterly profit or loss, maintained its annual forecast of “low single-digit percentages organic operating profit growth.”

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Is Carlsberg about to release a paper beer bottle?

Two prototypes and new partnerships have brought Danish brewing giant Carlsberg a step closer to releasing a paper beer bottle.

Is Carlsberg about to release a paper beer bottle?
Is the glass Carlsberg bottle living on borrowed time? Photo: Kristian Juul Pedersen/Ritzau Scanpix

Carlsberg said in a press release that it was close to selling beer in paper bottles, in part to the partnership.

Having worked on development of sustainable packaging since 2015, the company is scheduled to present two prototype paper bottles in Copenhagen on Friday.

“Although we’ve not yet reached our goal, the two prototypes are a significant step on the way to achieving our ultimate ambition, which is to bring this groundbreaking technology onto the market,” deputy director of Group Development at Carlsberg, Myriam Shingleton, said via the press statement.

A ‘paper bottle union’ between Carlsberg, The Paper Bottle Company (Paboco) and three other global companies – Coca-Cola, L'Oréal and The Absolut Company – is driving the development, according to the Danish brewery.

Paboco said that the partnership with the high-profile brands would strengthen work to create sustainable packaging.

“We are working across different retail sectors, sharing risk and are together in our vision to make the paper bottle reality which would fundamentally change the sector forever,” Paboco CEO Gittan Schiöld said.

Both prototypes are constructed primarily of sustainably grown wooden fibres and have internal coatings which enable them to contain beer.

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