The world’s 4th biggest brewer is expecting stalled profits in 2012. They are blaming depressed beer markets in northern & western Europe.
The world’s fourth biggest brewer, which brews Carlsberg, Tuborg, Baltika brands said its 2012 results would be dented by the euro zone crisis hitting beer drinkers and also by a low single-digit percentage rise in its input costs. “We have taken a cautious view for northern and western Europe, and assume a slightly declining market in 2012,” Chief Financial Officer Jorn Jensen said at an investor presentation.
1/3 of the brewery’s sales come from Russia. Carlsberg is planning to reverse the falling market by taking full control of the Baltika brand. The brewery owns all but 15% of the business unit. Baltika (the official beer supplier of the 2014 Olympics) stock surged nearly 10% on word of the Carlsburg offer. The deal is expected to be in place by May, 2012. Carlsberg is 4th largest in the world, behind AB-InBev, SAB Miller, and Heineken. [Reuters]
