Carlsberg's New Strategy to Focus on Growth, Sustainability
February 03 2022 - 12:13PM
Dow Jones News
By Dominic Chopping
Carlsberg on Thursday announced a new five-year strategy that
will see the Danish brewer increase its financial and
sustainability ambitions as well as seek more growth from non-beer
drinks.
The new strategy, known as SAIL'27, targets organic revenue
growth of 3%-5%, organic operating profit growth above revenue
growth, a continued focus on return on invested capital and new
sustainability targets.
Within its portfolio, Carlsberg said it will "more forcefully"
expand in the premium segment, strengthen its core mainstream beer
offering, accelerate alcohol-free volumes and extend its focus to
other beverages beyond beer.
"Consumers are increasingly looking for beverages outside the
beer category, such as cider, hard lemonade, hard seltzers and
ready-to-drink cocktails," it said.
"Both Somersby [cider] and Garage [alcoholic lemonade] have
proven scalable across markets, and we aim to expand them in new
markets, applying repeatable business models. In addition, we will
apply repeatable proven models and develop new propositions for
other existing well-known and trusted brands," it said.
On a regional basis, Carlsberg said it will increase margins in
western Europe, accelerate in core markets in Asia, drive value and
build scale in central and eastern Europe.
SAIL'27 will also see the company expand the scope of its
sustainability program, raise ambitions and launch an expanded
environmental, social, and governance program.
The new Together Towards Zero and Beyond program focuses on four
existing priorities, namely zero carbon footprint, zero water
waste, zero irresponsible drinking and a zero accidents culture, it
said.
In addition, it will introduce sustainable agriculture and
packaging as focus areas, including specific and measurable
targets.
Carlsberg said its approach to capital allocation remains
unchanged from its now completed SAIL'22 strategy.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
February 03, 2022 11:58 ET (16:58 GMT)
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