For the first time in Carlsberg's 178-year history, beer accounts for less than half of its revenue. Sales of soft drinks, cider, and other beverages are instead rising, now making up a larger share of the company's income. This shift is part of a global trend where beer sales are declining.
Alcohol consumption is declining in society, and it's evident at the Danish brewery Carlsberg. According to Dagens industri, the company has noted a historic shift: beer now accounts for 49 percent of revenue, while soft drinks, cider, and other beverages take the top spot.
This is a global trend. In major markets like the US and Germany, beer sales are shrinking by 6-7 percent annually. Jacob Aarup-Andersen, who took over as CEO in 2023, is leading the transition to a general beverage company. The focus is now on soft drinks, cider, energy drinks, non-alcoholic beer, and ready-to-drink cocktails.
Last year, Carlsberg acquired the British soft drink maker Britvic for 53 billion kronor, boosting the company's soft drink revenue from 16 to 30 percent. Aarup-Andersen emphasizes growth in new categories: “We shall not sit on our backs and fight for market shares in a shrinking market. All my focus today is on growing in new categories in the beverage market where there is underlying growth. It is the biggest change in Carlsberg's history, but it is the completely right way to go.”
Despite the decline, often explained by increased health awareness, Carlsberg remains a beer company. Aarup-Andersen hopes for a recovery: “This structural change is nothing we deny. But I am convinced that the weak economic situation also plays a role. The sharp price increases in food across almost the entire world have made people cut back on things that are not entirely necessary, like beer.”