Carlsberg to expand into cocktails and ciders in bid to drive earnings growth
Carlsberg expects earnings to grow faster than sales over the next five years as the Danish brewer expands in premium beers, no-alcohol brews, and other categories such as ready-to-drink cocktails and hard seltzer.
The company is forecasting an average annual increase in revenue of 3% to 5% between 2023 and 2027, Carlsberg said.
Ahead of issuing 2021 results, Carlsberg said 2022 will be a transition year.
It also said it plans to tap growth opportunities in the UK, France, Switzerland, China, India, and Vietnam.
The company said it will expand its Garage and Somersby brands as it explores non-beer categories, which also include cider and hard lemonade.
This year may suffer from a difficult comparison. The brewer has forecast operating profit would increase as much as 12% in 2021 after sales of its Tuborg and Kronenbourg 1664 Blanc brands surged in China, a key battleground market for brewers.
Launching its new five-year strategy, Carlsberg said: “Consumers are increasingly looking for beverages outside the beer category, such as cider, hard lemonade, hard seltzers, and ready-to-drink cocktails. We see attractive growth opportunities in several of these categories, leveraging brands such as Somersby and Garage.”
Last year Budweiser said it was speeding up its testing of new products, primarily for the China market, to keep pace with changing consumer tastes.
Energy drinks, seltzers, and non-alcoholic drinks are in its product pipeline.
“There are some consumer occasions and functional needs that we can answer with beer, but others we can better suit with other products,” the brewer said last year. “Chinese consumers are spoiled with choices, so we want to give more choices.”