Carlsberg has reported a decline in its third-quarter volumes, reflecting the challenges of a difficult consumer environment and adverse weather conditions.
The Danish brewer, renowned for its lager and other beverages, has experienced a slight drop in organic volume by 0.2%. Despite these challenges, global organic sales growth saw a modest increase of 1.3%.
One of the hardest-hit segments in Carlsberg’s portfolio was its premium beer category, which saw a 0.5% decrease in organic volumes. However, there is a silver lining as the company observed a substantial growth of 6% in its alcohol-free brews and a 4% increase in soft drinks. This indicates a shift in consumer preferences towards non-alcoholic and alternative beverage options.
Carlsberg’s international premium brands, led by its flagship label, showed resilience with an impressive 11% rise in organic volume. This suggests that while certain categories are struggling, others are flourishing, reflecting the complex dynamics of the current market.
Jacob Aarup-Andersen, Carlsberg’s Chief Executive, commented on the quarter’s outcomes: “It was a tough quarter, impacted by a challenging consumer environment and weather. Nevertheless, we delivered volume and revenue growth in the majority of our markets, although lower volumes in China, France and the UK impacted overall group performance.”
The company is particularly optimistic about its strategic growth categories, which include alcohol-free brews and soft drinks. As Carlsberg anticipates the completion of its acquisition of Britvic in the first quarter of 2025, its collaboration with PepsiCo is expected to expand into two additional markets by 2026. This partnership underscores the potential for long-term growth and diversification within its product range.
In light of these results, it is noteworthy that Carlsberg’s situation mirrors that of other major brewers. AB InBev, another leading name in the sector, also reported lower volume sales in its latest quarterly earnings.
Carlsberg is navigating through a period of mixed performance, with certain areas within its portfolio showing promise despite broader challenges. The shift towards alcohol-free and non-alcoholic beverages could signal a new direction for the company as it seeks to align with evolving consumer preferences. The anticipated expansion of its partnership with PepsiCo and the integration of Britvic could further bolster Carlsberg’s market position in the coming years.
