Carlsberg confirms €100m upgrade of French brewery

Carlsberg has announced plans to invest €100 million (US$117m) to upgrade its Kronenbourg brewery in Obernai, France – its largest in Europe.

Carlsberg’s Kronenbourg brewery in France is to benefit from a €100m upgrade

The announcement was made on Wednesday during a visit by French President Emmanuel Macron to visit to the New Carlsberg Glyptotek museum in Copenhagen.

Carlsberg acquired the facility as part of its acquisition of the French beer brand Kronenbourg in 2008. The brewery produces beers including Kronenbourg 1664,1664 Blanc and the alcohol-free Tourtel Twist, as well as Carlsberg’s international beer brands.

According to Carlsberg, the investment will modernise the Kronenbourg facility and increase its production capacity, enhance its production capabilities and improve health and safety at the plant.

“Today, Carlsberg’s rich heritage and close ties to France are perfectly united with our ambitions to invest further in our successful French business,” said Carlsberg CEO Cees ‘t Hart.

“We are proud of our position as the leading French brewer and of the impressive growth of Kronenbourg 1664 inside as well as outside of France. In order to continue to grow, we need to invest, and today’s announcement It is a testament to our shared values and promising growth opportunities.”

Carlsberg, the world’s third-largest brewer behind Anheuser Busch InBev and Heineken.

In its H1 results, published on 30 June 2018, the brewer reported organic net revenue growth of 5.1% (Q2: +7.6%) and net revenue decline of 0.7% to DKK 30,966m (Q2: +2.9%).

Total organic volume growth stood at 3.4% (Q2: +5.0%), driven by Tuborg (+8%), Carlsberg (+4%), Grimbergen (+11%) and 1664 Blanc (+55%).

Hart added: “We delivered strong results for the first six months of 2018 with healthy top-line growth, margin improvements across the regions, strong cash flow and continued debt reduction. We’re pleased to be able to adjust our earnings outlook upwards.”

The group has revised its earnings expectations for the year to “high-single-digit percentage organic growth in operating profit”, upward from its previous mid-single-digit estimate.