C-52 Part 4: Case StudiesSABMiller2003 2004 2005 2006 2007
Sales volume (mil. hl) n.a. n.a. n.a. n.a. 239
Net revenue (mil. €) 8,179 9,407 11,048 13,354 15,412
Net profit (mil. €) 417 984 931 1,067 1,309Worldwide beer volume 2007, %
Latin America 25
Europe 20
North America 10
Africa and Asia 12
South Africa 33
Famous brands: Pilsner Urquell, Peroni Nastro Azzurro, Grolsch, Carling’s Black Label.
Source: Companies' annual reports.Exhibit 4 Carlsberg's Competitors (continued)Exhibit 5 Carlsberg A/S Regional StrategiesWestern EuropeBBH and the Rest
of Eastern Europe Asia
Strategy Improved profitability through inno-
vation and streamliningRapid growth and higher earnings Long-term growth through build-up
of market positions
Group focus ■ Innovation
■ Marketing and brand building
■ Continuous streamlining
■ Corporate culture and
management development
Regional focus ■ Maintaining and developing
market positions
■ Marketing
■ Innovation
■ Focus on value
■ Streamlining on every level■ Strengthening the developing
market positions
■ Increased focus on premium
segments
■ Investments
■ Optimization■ Strengthening and product
range
■ Improving sales work
■ Strengthening existing market
positions through organic growth
■ Establishing new market positions
through acquisitions
Source: Carlsberg Annual Report 2007.worthwhile for a brewing company to be present in
a market where it was not the market leader or the
runner-up. This philosophy was shared by Carlsberg, as
indicated by Carlsberg’s press officer, Jens Peter Skaarup:
“What is important is the position we have on the markets
in which we are present.” In relation to the consolidation
of the industry, he argued that “competition is something
we are happy about. It makes us more ‘fit for fight.’”^9
Carlsberg in Russia
Once Carlsberg gained access to BBH through the Orkla
ASA merger, the scene was set for Carlsberg to reapthe major benefits of the emerging Eastern European
markets. In 2007, when Carlsberg owned 50 percent of
BBH’s shares, the Russian brewery held a market share
of 37.6 percent in Russia and was the market leader. BBH
operations in Eastern Europe—Russia, the Ukraine,
the Baltic states, Kazakhstan, Uzbekistan and Belarus—
accounted for 23 percent of Carlsberg’s revenue in 2007.
The Russian market was undoubtedly the most import-
ant for BBH, as it represented 79 percent of sales volumes
and 86 percent of operating profit. From 2006 to 2007,
the Russian market grew by 16 percent, while annual
beer consumption per capita amounted to 75 liters (the
average in the Scandinavian markets was 65 liters).