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Carlsberg Plans Asia Expansion

Source: Reuters
03/06/2009

London, June 3 - Danish brewer Carlsberg is planning further expansion in Asia to reduce its exposure to the volatile Russian beer market, its chief executive told the Financial Times.

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"We do see Asia as being a place to expand and invest in," Jorgen Buhl Rasmussen told the newspaper.

He said a stronger business in Asia, which accounts for only 10 percent of Carlsberg's sales volumes and 17 percent of operating profit, would balance the firm's exposure to Russia, which contributes about half of group profits.

He said Carlsberg, the world's fourth-largest brewer, was prepared to make an acquisition in Asia if the target was "a fantastic fit" and sees "big opportunities" in Vietnam, China and India.

Rasmussen forecast that both 2009 and 2010 would remain "tough and very challenging."

The FT said he dismissed suggestions that Carlsberg's financial targets for 2009, including making a net profit of at least 3.5 billion crown ($672 million), up from 2.6 billion crowns last year, were not too bullish.

"The targets are challenging ... but they're still feasible," he said.

Last month Carlsberg reported a doubling in first-quarter operating profit, ahead of expectations, as it grew share in Eastern Europe.



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