Carlsberg CEO warns of weak sentiment and blasts Moscow for seizure of subsidiary

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Carlsberg’s chief executive warned of weak consumer sentiment and denounced Moscow’s seizure of its Russian subsidiary as the Danish brewer reported lower than expected beer sales across its key markets. 

“There is nowhere we are seeing a buoyant consumer,” Jacob Aarup-Andersen said following his first trading update as chief executive, in which the company reported like-for-like revenue growth globally of 5.8 per cent on the back of price increases.  

Sales volumes fell 5.2 per cent in western Europe, lower than analysts’ consensus, while eastern European volumes fell 6.3 per cent. Sales volumes in Asia grew 1.5 per cent, slower than expected, hit by the extensive pandemic lockdowns in China. 

“We do not expect an improvement in consumer sentiment in Europe in the short term . . . it’s a dark winter we are going into,” Aarup-Andersen told the Financial Times, adding he expected sales to pick up next spring, helped by sporting events such as the Paris Olympics, sponsored by Carlsberg. 

The chief executive also attacked Moscow, saying the government had “stolen” Baltika Breweries, its Russian business.

“There is no way around the fact that they have stolen our business in Russia and we are not going to help them make that look legitimate,” he said. 

The company announced earlier this month that it had written off the value of Baltika after concluding it could “see no path to a negotiated solution” for exiting the country.

The subsidiary was seized and placed under “temporary management” by local authorities in July, not long after Carlsberg announced it had found a buyer for Baltika.

The gloomy climate has also hit rivals Heineken and AB InBev, which reported negative sales volume growth of 4.2 per cent and 3.4 per cent respectively in recent days as price hikes curbed sales.

However, AB InBev boss Michel Doukeris struck an optimistic note, saying consumers were likely to become more willing to spend as inflation moderated and wages rose.

“The beer industry is very resilient,” he said. “As inflation goes back to normal and salaries catch up, volumes tend to go back to normal in the market.”

In Asia, Carlsberg said sales had been hit by a fall in beer consumption in China over the past two years. “When China sneezes, south-east Asia catches a cold,” Aarup-Andersen said. 

The chief executive said the brewer expected sales to contract — but with an 8 per cent market share, there was “plenty of opportunity” for the company to grow in China.