Annual Report 2001 - Carlsberg Group

Regional Reports - Asia
43
Carlsberg Asia Holding Ltd
Most of Carlsberg Breweries’ activities in Asia
have been transferred to the joint-venture Carlsberg
Asia Holding Ltd. (CAL), of which 50% is
held by Carlsberg Breweries and 50% is held by
the Asian Chang Beverage Company. CAL was
officially established in the autumn of 2001 and is
expected to be fully operational from the beginning
of 2002. CAL will then hold ownership interests in
operations in China, Hong Kong, Malaysia, Nepal,
Singapore, South Korea, Sri Lanka, Thailand, and
Vietnam. These operations all manage portfolios of
strong local brands and Carlsberg as the international
premium brand. Further, CAL has longstanding
licence arrangements with local partners
in e.g. Indonesia and Japan.
South Korea
After some years with double-digit growth, the
Korean beer market increased only slightly in 2001
and per capita beer consumption totalled approx.
37 litres. However, demand for premium beer has
picked up in line with the penetration of various
different kinds of imported beer in the market due
to changes in import regulations. Carlsberg’s partner
in Korea, Hite Brewery Co. Ltd., has been
market leader since 1996 and reached an all-time
high market share of 55% in 2001. In addition, the
shareholding in Hite was increased by 8.4% in January
2002.
Hong Kong
The economic growth in Hong Kong has been
particularly weak during the last half of 2001. This
has impacted overall beer consumption, and the
premium segment has come under increased price
pressure from low-price import brands.
Overall sales of the Carlsberg brand have decreased
compared to previous years, although
Carlsberg has maintained its market share in the
premium segment. In addition to the Carlsberg
brand, Carlsberg Hong Kong Ltd. produces a
number of complementary brands, including its
standard priced product SKOL and Tetley’s Bitter
imported from the UK. Both brands showed satisfactory
sales performance, and so did the Shandy
product Jolly Shandy. Furthermore, the company
has taken on the distributorship in Hong Kong for
Guinness, which complements the Carlsberg portfolio.
Japan
Total beer sales remained stagnant and per capita
consumption totalled about 55 litres with a remarkable
shift from ordinary beer to the special, light
beer type “Happoushu”. In 2001, Happoushu’s
market share reached 32% and the beer type is
very price competitive because of lower excise
duties. As the leading international draught beer
brand, Carlsberg continued to enhance its strong
China
Chinese beer consumption continues to rise, and
in 2001 China overtook the US as the world’s largest
beer market. The rise is mainly driven by local
brands, however, and sales of foreign premium
beer are stagnant. In addition, intensified price
competition makes the premium segment very difficult.
On that basis it is very positive that sales of
the Carlsberg brand increased in China in 2001,
particularly in the important South China market.
In southern China, sales of CAL’s local brand,
Dragon 8, were adversely affected by the tough
competition which reduced earnings and sales volume.
However, the brand has maintained its
strong position in its core market around the Hinson
brewery.
Group Companies
Asia
Carlsberg Asia Pte Ltd, Singapore 50%
Carlsberg Marketing (Singapore) Pte Ltd., Singapore 100%
Carlsberg Brewery Hong Kong Limited, Hong Kong 51%
2 subsidiaries
Carlsberg Brewery Malaysia Berhad, Kuala Lumpur, Malaysia 50%
2 subsidiaries
Gorkha Brewery Ltd, Katmandu, Nepal 48%
Hue Brewery Ltd., Hue, Vietnam 35%
South-East Asia Brewery Ltd., Hanoi, Vietnam 35%