Annual Report 2001 - Carlsberg Group

Financial Review of the Carlsberg Group
67
A new Financial Statements Act has been implemented
in Denmark with effect from 1 January
2002. This will entail a number of significant changes
to the present accounting policies of the
Carlsberg Group. As the most significant change,
Group goodwill and other intangible assets will be
capitalised and amortised. Other changes include
capitalisation and depreciation of returnable packaging,
capitalisation of indirect production costs
as well as details on the practices relating to provisions
for restructuring, etc.
The changes in accounting policies involve
substantial efforts and completion of the changes
is expected by the end of March 2002. Carlsberg
will then immediately inform the market of the impact
on the accounting figures for 2001 resulting
from the changes in the policies.
The changes in the accounting policies are of a
purely technical nature and will have no effect on
the company’s cash flow/available funds.
Significant events
On 31 May 2000, an agreement was concluded
with Orkla ASA regarding the integration of
Carlsberg’s and Orkla’s beverage activities. Final
approval from the competition authorities regarding
the inclusion of Orkla’s beverage activities
was received on 2 January 2001, and Orkla then
contributed its beverage activities into Carlsberg
Breweries A/S with effect in the accounts as from
1 January 2001. After the contribution, Carlsberg
A/S owns 60% of Carlsberg Breweries A/S while
Orkla ASA owns the remaining 40%. Orkla’s
beverage activities consisted of a 50% stake in
BBH as well as the 100%-owned AB Pripps
Bryggerier in Sweden and Ringnes AS in Norway.
In connection with the contribution of Orkla’s
beverage activities and the subsequent merger of
Falcon and Pripps Bryggerier into Carlsberg Sverige
AB, plans were made for a restructuring of the
activities in Sweden. In connection with the merger
it was decided to close down Pripps’ former
brewery and warehouse in Gothenburg. The phasing
out and amalgamation of activities in Pripps
Bryggerier and Falcon have characterised most of
2001. Final close-down of the brewery in Gothenburg
will take place in the first half of 2002. Carlsberg
Sverige AB’s activities and results are significantly
affected by this restructuring process.
As a consequence of the agreement with Orkla
ASA, the Swedish and Norwegian competition
authorities required that Carlsberg discontinued
bottling, sale and distribution of either Pepsi or
Coca-Cola in the Swedish and Norwegian markets.
Carlsberg thus disposed of the Coca-Cola
companies in Sweden, Norway and Iceland as of
1 January 2001, whereas the Coca-Cola business
is continued in Denmark and Finland as 100%-
owned activities of Carlsberg Breweries. 2001
saw efforts to integrate these companies into
Carlsberg Danmark A/S and the Finnish brewery,
Sinebrychoff, respectively. The integration process
has been completed in Finland. In Denmark, the
integration of distribution has been completed
whereas final integration of sale and administration
still remains. According to plans, completion of this
integration is expected during the spring of 2002.
Carlsberg’s Asian activities were not finally included
in Carlsberg Asia Holding Ltd. due to pending
government approvals. The activities included
in the accounts are based on Carlsberg’s own
companies according to the legal structure in Asia
prior to the establishment of Carlsberg Asia (as in
2000).
On 3 November 2000, Carlsberg’s acquisition
of the largest brewery in Switzerland, Feldschlösschen
Getränke Holding AG, was announced. The
company was included in the accounts with effect
from 1 December 2000. The operations of the
company have thus been fully consolidated in
2001 whereas it was included with only one
month in 2000.