Carlsberg looks to Asian expansion

Carlsberg has revealed its intentions to expand its operations in Asia to counter the impact of the volatile Russian beer market.

The Danish brewer’s chief executive officer Jørgen Rasmussen said that “big opportunities” exist in places like Vietnam, India and China and is prepared to make acquisitions in the region.

Speaking in the Financial Times, Rasmussen said: “We do see Asia as being a place to expand and invest in”.

Asia currently accounts for just 10% of the brewer’s sales volumes, and the brewer believes that strengthening its presence in the region would go some way to helping “balance” the effects of the fluctuating Russian market, which accounts for around 50% of Carlsberg’s profits.

Rasmussen went on to reveal that Carlsberg is also searching for a new executive to run its Asian operations, saying the group needed someone with “broader experience”.

While he said that rtading conditions over the next two years would remain “tough and very challenging”, he dismissed suggestions that the brewer’s forecasts for 2009 were too bullish, saying they were “still feasible”.

He also went to lengths to stress his belief that Carlsberg did not overpay for the Scottish & Newcastle assets it acquired last year, saying the deal was made “at exactly the right time”.

He added that the brewer would have found it harder to get the necessary funding if it had attempted the deal as little as six months later.

Alan Lodge, 04.06.2009