UK: Carlsberg outlines plans to combat growth of craft and speciality brewers
The UK arm of beer giant Carlsberg has outlined plans to combat the growth of craft and speciality brewers after reporting a second consecutive year in the red and another fall in turnover, The Insider Media reported on October 5.
The Danish-owned company, which has its UK headquarters in Northampton, has said it needs to adapt to compete effectively with new entrants into the market as well as reacting to Tesco's move to acquire wholesaler Booker.
Carlsberg UK has posted a pre-tax loss of £8.9 mln for the year to 31 December 2017, compared to a loss of £10.7 mln during the previous 12 months.
The company's turnover declined from £473.3 mln to £456.2 mln over the same period.
In the prior 12 months, the business slipped into the red and lost almost £50 mln in revenue.
During the year the company purchased London Fields Brewery in a bid to increase its market share in craft beer.
A statement signed off by the board said: "The environment continues to remain challenging with the EU referendum and subsequent general election results in the UK leading to uncertainty; consumers and businesses alike are about to enter uncharted territory.
"Spending continues to rise although the rate is falling as consumers seek more value for money and feel the squeeze from price increases
The statement added: "The beer market continues with the backdrop of declining volumes albeit stabilising in the last year.
"The sector also remains highly competitive with no real change to the dynamics which have seen a continued high number of craft beers, flavoured beers and microbreweries driving innovation, but with it fragmentation and complexity."
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