Carlsberg

CarlsbergCompany OverviewCarlsberg A/S (Carlsberg) is one of the leadingbrewing companies in the world. The phoner is engaged in the production, retail and merchandise of beers and non-alcoholic beverages. It is likewise engaged in the development and sale of real land and operation of the Carlsberg Research Center. The corporation offers wide range of beer, mineral water, cider and malt based drinks through more than 500 brands including Carlsberg and regional brands suchas Tuborg, Baltika and Kronenbourg. Carlsberg sells its products in more than 150 countries and operates approximately 100 subsidiaries in western sandwich Northern europiuman, Eastern atomic frame 63an and Asian market places.Business descriptionCarlsberg A/S (Carlsberg) is the poop largest brewery group in the world. The troupe along with its subsidiaries engaged in the production, retail and marketing of beers and non-alcoholic beverages. It offers beer, mineral water, cider and malt-based drinks n ether more than 270 brands. The play along is also engaged in the development and sale of real estate and operation of the Carlsberg Research Center. Carlsberg operates through its several subsidiaries in Denmark and globally with all over 45,505 employees. The fellowships beer portfolio includes more than 500 brands which vary significantly in people, price, target audience and geographic penetration. The companys brand portfolio includes international brands such as Carlsberg, Tuborg, Baltika and 1664, and local brands such as Ringnes (Norway), Feldschlsschen (Switzerland), Lav (Serbia) and Wusu (Western China). During the monetary class 2008, beer gross sales accounted for 75.9% of nets sales of the company. Along with core beer business, the company also offers Malt-based beverages and other beverages such as soft drinks, water and cider. These non alcoholic beverages are available in different flavors namely Coffee, Lemon, Chocolate, Angelica, Cloves, Raspberry, Prunes, Lime, Chili. Carlsberg operates in three geographical regions namely, Northern Western atomic number 63, Eastern Europe, and Asia. The Northern Western Europe segment includes the operations in countries Denmark, Italy, Poland, France, Greece, Norway, Sweden, the UK, Germany, the UK, and Ballistic states. This segment plays an important role in the companys business portfolio. During the fiscal form 2008, the company generated DKK 37,128 million of the total net revenues fromthis segment. The Eastern Europe segment includes the operation in countries such as Russia, Ukrian, Kazakhstan, Uzbekistan, Belarus, and Azerbaijan. In this segment, Russia is the largest and market and accounts for 85% of segment s net revenue. The partial acquisition of Scottish Newcastle addd the importance of this region in the companys business portfolio.During the fiscal year 2008, the company generated DKK 19,137 million of the total net revenues from this segment.The Asia segment operates in Mala ysia, Singapore, China, India, Laos, Vietnam, and Cambodia. Carlsberg is one of the leading international brewery groups in Asia and has significant functions in a enumerate of Asian markets and the Carlsberg brand is one of the major(ip) international beer brands in the region. During the fiscal year 2008, the company generated DKK 3,555 million of the total net revenues from this segment. During the year 2009 the company launched one of the worlds most expensive beers, Vintage No. 2. Further, it acquired 41% interest group of Xinjiang Lanjian Jianiang Investment Co., Ltd and increased its stake to 89.3%.Robust Financial PerformanceThe company has exhibited robust financial performance from the past few years. The company report revenues of (Danish Krone) DKK 59,944.00 million during the fiscal year ended December 2008, an increase of 33.95% over 2007. The operating profit of the company was DKK 6,338.00 million during the fiscal year 2008, an increase of 31.09% over 2007. The n et profit of the company was DKK 2,631.00 million during the fiscal year 2008, an increase of 14.54% over 2007. The higher level of earnings was due to the volume increase in growth markets. The strong financial growth of the company signifies its efficient cost structure and market allocate gains. Also, it would help in the future investments of the company such as strategic acquisitions.Market spark advance PositionCarlsberg is one of the fastest growing breweries in the world. It operates in Europe and Asia and sells its products in more than 150 countries. With the acquisition of Scottish Newcastle together with Heineken, it became the fourth largest brewery group in the world. It is the market leader in most of the countries in which it operates. The Group is the leader inthe Western Europe countries with market share of 63% in Denmark, 54.2% in Norway, 37.7% in Sweden, and 46.9% in Finland. The Group also has a 45% market share in the Baltic countries and acquired number on e position in Russia, Kazakhstan and Western China. This dominant market position and wide international presence helps in maintaining its market position and gives it the position to attract new customers and easily venture into new businesses.Consolidation of Beer patienceThe beer constancy in which Carlsberg operates is very competitive. With entrance of more new players and industry integrating, the current level of contest is expected to further intensify in the near future, which whitethorn result in price reductions. In 1998, the pinnacle ten brewers accounted for 34% of the global beer market, but as the global consolidation process accelerated this figure grown to 59% in 2008. In 2008, Anheuser-Busch Companies, Inc. acquired InBev and the company along with Heineken acquired Scottish Newcastle. This industry consolidation increases the company and if the company is not able to maintain the product quality and consumer loyalty, this intense competition could reduce th e sales volume of the company, thereby affects its market position.Decrease in Global Beer SalesThe decreasing global beer sales has been a major area of concern for the company as its core business drill is the sales of beer across the world. In the first three months of 2009, global beer sales volumes dropped by 6.3%, due to global economic downturn, bad weather and gage bans in some countries. Beer sales volume in Western Europe declined 1.6% organically in 2008, due to the combined impact of the financial crisis, sess bans in France, the UK, Finland and the Netherlands, and extraordinary increases in excise duties in the UK. According to the British Beer Pub Association (BBPA), beer sales in the UK, in the first canton of 2009, dropped by 8.2% as compared to the same period in 2008. As the company operates principally in European beer markets, the decrease in beer sales may affect the sales and profits of the company.