Market Penetration and Acquisition Strategies for Emerging ...

After consolidating the brand portfolio, Carlsberg launched a major branding
initiative in May 2002 to reposition the Carlsberg brand. The market share was hence
increased from 0.2% to 1.5%, and Carlsberg overtook Heineken (1.2%) as the leading
international brand. Euromonitor analysts were impressed by this spectacular growth:
“The sales of the Carlsberg brand increased by over 700% in 2002. This growth was the
result of a good promotional campaign based on a well-balanced marketing strategy,
including TV commercials which consumers liked from their launch. Introducing a new
disposable 500 ml bottle also helped.” 27 At the same time, the portfolio of regional brands
was streamlined, while new brands such as Harnas were introduced to serve niche
markets. The product portfolio thus served all major segments of a highly segmented
industry and the sales strategy emphasized the full range of the Carlsberg products.
Carlsberg boosted its market share to 14.2% in 2002 (Exhibit 7). From 2004, the
integration extended beyond Polish borders, as Carlsberg affiliates in different European
countries began sharing production capacity.
Even though Carlsberg was a relatively late entrant into the Polish market, this
multi-track strategy laid the foundation for Carlsberg to become the third largest brewer
in Poland. Continuous investment, development of niche brands, and adept integration of
separate operations are designed to enable Carlsberg to challenge the market leaders and
to raise profitability.
*** Exhibit 9 approximately here ***
5.4. Lithuania
Compared to Poland, Lithuania offers a much smaller market, and in consequence less
regional segmentation and fewer players in the market. In consequence, Carlsberg
attained a dominant market position at a much earlier stage, and thus came in conflict
with the competition authorities. Also as a consequence of the smaller market size,
Carlsberg’s activities in Lithuania were earlier integrated in a supra-national operation
covering all of the Baltic States.
Carlsberg acquired nearly full ownership of local market leader Svyturys in 1999.
Around the same time, BBH acquired two breweries: Utenus Alus and Kalnapilis. The
merger with Orkla, which owned 50% of BBH, strengthened Carlsberg’s position in
Russia and the Baltic States (Exhibit 9). Thus, Carlsberg expanded in Lithuania as part of
a global merger that extended Carlsberg’s reach in the entire region. This indirect
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