Category Archives: Carlsberg China

Carlsberg Offers to Raise Stake in Chongqing Brewery

Source: Bloomberg News By Clementine Fletcher

Carlsberg A/S (CARLA), the world’s fourth- biggest brewer, will offer to buy as much as 2.9 billion yuan ($466 million) of shares in Chongqing Brewery Co. (600132) as it seeks to tighten its grip on the Chinese beermaker.

Carlsberg, which already owns a 29.7 percent stake in the Chongqing municipality-based brewer, will offer 20 yuan a share for a further 30 percent stake in the maker of Shancheng beer, it said yesterday in a statement. The deal will add to earnings per share in the first year after completion.

“Strategically, we believe the deal makes a lot of sense,” Trevor Stirling, an an analyst at Sanford C. Bernstein in London, wrote in a note to clients dated yesterday. “Asia is key to Carlsberg’s long-term growth story; in particular, China is key to Carlsberg’s footprint in Asia, especially western China, including Chongqing.”

Carlsberg, which gets about 14 percent of its sales from Asia, according to data compiled by Bloomberg, is seeking to expand its operations outside the slow-growth markets of northern and western Europe. The brewer said on Feb. 1 that it’s starting a new joint venture in Myanmar, after announcing a tie- up with Thailand’s Singha Corp. on Sept. 28. Carlsberg is the biggest brewer in Russia.

The Chongqing price is 15.7 times estimated earnings before interest, tax, amortization and depreciation, based on expected profits the first year after completion, Carlsberg said. The deal will be financed through existing facilities and may take as much as 12 months to complete.

Stockholder Sells

Chongqing Beer Group Co., which owns 20 percent of Chongqing Brewery, has committed to tender all its shares at the proposed price. If the bid is oversubscribed, Carlsberg will buy any remaining shares held by Chongqing Beer Group.

“We believe that through closer cooperation with Carlsberg, the performance of this large-scale beer business will be significantly enhanced,” Joergen Buhl Rasmussen, Copenhagen-based Carlsberg’s chief executive officer, said in the statement. “Our Asian business is very important for our long-term growth strategy.”

Carlsberg’s shares rose 1.1 percent to close at 594.50 kroner in Copenhagen yesterday, giving it a market value of 91.7 billion kroner ($16 billion). Chongqing’s shares, halted since Feb. 25 pending this announcement, will resume trading today, according to a statement issued via the Shanghai stock exchange yesterday.

Chongqing is strong in western China, including Chongqing municipality, and on the east coast, Ian Shackleton, an analyst at Nomura in London, wrote in a note dated yesterday.

“Although Carlsberg will need further deals to become truly national like market leader China Snow, majority control of Chongqing is a useful building block towards this goal,” Shackleton said.

Carlsberg Returns to Thailand After Heineken’s APB Deal

Source: Bloomberg News By Clementine Fletcher

Carlsberg A/S (CARLA), the world’s fourth- biggest brewer, is returning to Thailand after a seven-year hiatus, following Heineken NV’s successful bid to expand in Southeast Asia.
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Carlsberg Interim results 6 months ended 30 June 2012- Asia Highlights

Source: Carlsberg

The Wall Street Journal notes that “Carlsberg has been increasing its presence in Asia to capitalize on growing demand for Western beer brands. In the second quarter it made 12% of its revenue there, compared with 9.0% a year earlier. In June, the brewer struck a deal to build China’s largest brewery over a 10-year period, and Chief Executive Joergen Boulle Rasmussen Wednesday said the company is prowling the region for possible acquisition targets.”

Changes Brew in Asian Beer Sector

Source: Wall Street Journal By Kathy Chu and Mike Esterl

HONG KONG—The burgeoning beer industry in Asia is likely to undergo significant changes this week, when a decision is expected to be made regarding Heineken NV’s US$4.1 billion bid for one of the region’s prized assets.
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Carlsberg China Backgrounder

Carlsberg beer has been sold in China for over 130 years. In 1876, Carlsberg was first exported to China. The Carlsberg Brewery in Hong Kong, established in 1981, became the base for Carlsberg’s expansion into mainland China.

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Carlsberg Group signs agreement on project in Yunnan,China

Source: Xinhua

COPENHAGEN, June 15 (Xinhua) — TDanish brewing company Carlsberg Group on Friday entered into an agreement with Dali prefecture of China’s southwestern province of Yunnan on capacity expansion.

Under the Strategic Agreement of Beer Production Capacity Increment, which was signed by Carlsberg Global CEO Joergen Buhl Rasmussen and Dali prefecture governor He Jinping, the brewing capacity at Dali will expanded from the present 300,000 tons to 1 million tons by 2025.

With an estimated total investment of 5 billion Chinese yuan, the plan covers brewery construction, brand building, training and organization development as well as supplier network enhancement, according to a press release issued by the Carlsberg Group.

Carlsberg, which owns 41 breweries in China, pledged to build the state-of-the-art breweries at Dali Brewery and Kunming Huashi Brewry by introducing global advanced hardware and international standard.

Carlsberg will continue the efforts of growing with local partners through enhancement of the production efficiency, less consumption of water, electricity, coal as well as less carbon dioxide emission, said the press release.

“Carlsberg believes in growing together with local partners. We are proud that the global advanced breweries will be built in Yunnan through our joint-efforts. Capacity optimization in the region will not only support the continuous growth of Carlsberg in China, also will inject strong momentum for the growth of Carlsberg Asia and Carlsberg Group,” said Global CEO Joergen Buhl Rasmussen.

Carlsberg to tap China growth with giant brewery

Source: Reuters

COPENHAGEN, June 13 – Carlsberg is to build a giant brewery in China to tap growth in the world’s largest beer market, as the Danish group looks to expand outside sluggish European markets.

The world’s fourth-biggest brewer will sign the deal on Friday to coincide with the visit to Denmark of Chinese President Hu Jintao, and spend US$670 million (RM2.13 billion) on the project in the southwest province of Yunnan.

China, which overtook the United States as the world’s biggest beer market in 2003 and was nearly twice the size by 2010, is expected to grow 5 per cent annually in coming years, twice the growth of the global market in 2011.

Copenhagen-based Carlsberg is looking to Asia, especially China, India and Vietnam, to offset stalled growth in its former powerhouse in Russia which brought in big tax rises. It now earns around 11 per cent of group profit from Asia.

While Carlsberg is the biggest beermaker in western China where it runs 41 breweries either fully or in partnerships, it lags other foreign and domestic brewing heavyweights elsewhere.

China’s four biggest brewers – China Resources Snow (CRS), Tsingtao, Anheuser-Busch InBev and Beijing Yanjing Brewery – have nearly 60 per cent of the market and are all looking for local partners to strengthen their positions.

CRS – the largest brewer and a joint venture between China Resources Enterprise and London-listed SABMiller – makes Snow, the world’s biggest beer brand.

The four big brewers are all bidding to buy most of the operations being sold by Chinese peer Kingway Brewery Holdings, worth around US$700 million.

Carlsberg’s new brewery will start in 2014 and produce local brands as well Carlsberg and Tuborg to become the group’s second-biggest site with an annual capacity of 10 million hectolitres, behind its Russian Baltika brewery at 12 million.

“The brewery will be gradually built over a period of time to suit China’s growing demand for beer in the future,” a Carlsberg spokesman said. Carlsberg’s Asian beer volumes grew 14 per cent in the first quarter.