116770 Project Obelix Pt1.qxp - Carlsberg Group

SingaporeCarlsberg has been imported into Singapore since the beginning of the twentieth century. Carlsberg Singapore,wholly-owned by the Group, is a sales and marketing company. Most of the beer sold by Carlsberg Singaporeis today brewed on license in Thailand by San Miguel. Carlsberg Singapore is the second largest brewer inSingapore.VietnamSouth East Asia Brewery (“SEAB”) is 60 per cent. owned by the Group, and Hue Brewery Ltd. (“HBL”) isowned 50 per cent. by the Group. SEAB and HBL have built a beer portfolio to cover all price segments. In2006, the Carlsberg brand was repositioned as one of the most expensive locally-produced premium beers andis currently among the top three international premium beers. Halida competes in the mainstream segment asthe second largest brand in northern Vietnam, while Viet Ha Bia Hoi is the value brand. Huda competes in themainstream segment in the central part of Vietnam. The Group has two other joint ventures in Vietnam, theVung Tau Brewery in southern Vietnam and the Halong Brewery in Halong City, and recently established astrategic partnership with Habeco by acquiring a 16 per cent. shareholding in Habeco. In Vietnam, the Group’sproducts are distributed primarily through wholesalers. In addition the Group acquired a 50/50 joint venturewith Vinataba near Ho Chi Minh City in Southern Vietnam in 2008 as part of the acquisition of Scottish &Newcastle plc.IndiaThe Group has recently taken the first steps in establishing a platform in India. Management believes that theIndian beer market has considerable growth potential because annual consumption per capita is among thelowest in Asia and India is experiencing strong economic growth, urbanisation and improved consumptionpatterns. At the end of 2006, the Group entered into a joint venture in India (South Asia Breweries Ltd.,renamed Carlsberg India Pvt. Ltd. in February 2009) initially by acquiring the Him Neel Brewery north ofDelhi, and also by building a greenfield brewery in the state of Rajasthan. This greenfield brewery commencedproduction in the first quarter of 2008. A second greenfield brewery was established in the state of Maharashtraand commenced production in the second quarter of 2008. A partnership has also been established in Kolkata,West Bengal to establish a fourth brewery, which is expected to begin operations in the second quarter of 2009.The joint venture expects to expand its operations in India with further investments in the coming years.Nepal, Sri Lanka, Cambodia, Laos and Hong KongThe Group has a substantial market share in Nepal, Sri Lanka, Cambodia, Laos and Hong Kong. In Nepal, theGroup has a shareholding of 49.8 per cent. in Gorkha Brewery Pvt. Ltd.; in Sri Lanka, the Group has ashareholding of 17.4 per cent. in Lion Brewery Ceylon Ltd.; in Cambodia, the Group has a shareholding of50 per cent. in Cambrew Ltd; in Laos, the Group has a shareholding of 50 per cent. in Lao Brewery CompanyLtd. and a shareholding of 65 per cent. in Pepsi Laos; and in Hong Kong, the Group has a wholly-ownedsubsidiary, Carlsberg Hong Kong Ltd. The Group has shown strong volume growth in this region in the period2007 to 2008.CompetitionThe competitive landscape varies from region to region. In Northern & Western Europe (in particular in theNordic region) and in parts of Asia (in particular in Western China and Vietnam), Carlsberg competes mainlywith local players and local beer brands. In Eastern Europe (in particular in Russia and Poland), the UnitedKingdom and Asia (excluding China and Vietnam), Carlsberg competes mainly with large leading internationalbrewers and international brands.67