Serbia: Carlsberg is to invest €20 million into its Serbian operations next year

Danish brewing force, Carlsberg A/S has recently announced that it plans to invest €20 million into its Serbian operations next year in order to capitalise on increased revenue from sales of beer in the country, Beverage Daily posted on September 21. Serbia was Carlsberg’s fastest-growing market last year with sales reaching 1.1m hectolitres in 2005, leaping from 570,000hl a year earlier.

Dr. Isaac Sheps, CEO of Carlsberg Srbija stated that the company had seen "very high growth in the last two years, having come from no. 5 in the market to a clear no.2, we need additional capacity to meet the forecasted demand for our brands in the country.” The company also revealed that around €3m will be put towards reducing the environmental impact associated with the plant, by funding a waste water treatment facility.

The company entered the market just three years ago, after acquiring the Pivara Celarevo brewery and has experienced steady growth ever since. Through popular local brands like Lav beer, Carlsberg has managed to acquire a 20 per cent market share in Serbia, making it the country's second biggest brewery. Last year it revealed that sales had almost doubled from 2004, increasing by 570,000 hectolitres to 1.1m.

News that Carlsberg intends to expand their operations signifies growing confidence in the Serbian beer market, and the company's intentions to be market leader. Carlsberg's investment will be used to help increase the capacity of its plant in the north of the country, in a bid to meet growing demand for its beers.

Carlsberg success in Serbia again highlights the growing importance of the Eastern European beer market, as some western beer markets show a slight decline.

Earlier this year, Carlsberg posted a difficult half year profit report for its operations in discount markets like Italy and Sweden, with even larger consumers like the UK seeing declines. The disappointing performance has been largely offset, however, by acquisitions in Eastern European countries like Serbia, and particularly Ukraine and Russia.

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