Germany: Carlsberg Deutschland competitively positioned

The restructuring processes at Carlsberg Germany into a competitive brewery and beverage wholesaler are almost complete, the company has recently announced. Through consistently focusing on the core business and on a small number of brands and by targeting northern and eastern Germany, it has been possible to reduce bank debts from 275 million euros (2003) to almost zero. It was possible to almost double equity ratio during this time, from 26.3 % in financial year 2003 to 51.3% in 2005. In the same period, the EBIT margin also rose from 4.4% to 7.8%, and profits increased from 11.9 million euros to 33.1 million euros.

The Danish parent company rewarded the achievement by presenting the company with the Carlsberg Award for the best turnaround among its subsidiaries.

Through its integration into the internationally acting Carlsberg A/S , executive chairman Wolfgang Burgard considers Carlsberg Germany to be strong and competitive and ready to face the national market. During the first two quarters of 2006, national sales were up by 0.3%.

The Carlsberg Germany group includes Holsten Brewery with its main brands Holsten, Astra and Carlsberg, the brewery in Lübz in Mecklenburg with Lübzer and Duckstein, the Feldschlößchen brewery in Dresden with Feldschlösschen Pilsner, the Carlsberg Vertriebsgesellschaft West in North Rhine-Westphalia, which sells the Altbier (ale) specialities Hannen and Gatz and the Feldschlösschen brewery in Brunswick, which specialises in fighter brands – such as the successfully launched 5.0 Original – and private labels. Since the nation-wide introduction of the returns regulations for non-returnable packaging in May 2006, the brewery group has managed to gain market leadership for brand beer in PET bottles and cans.

Göttsche-Getränke is also part of Carlsberg Germany. It is a leading beverage wholesaler in the north and east with seven subsidiaries. In 2005, the breweries and Göttsche had 1,570 employees and sold a total of 8.4 million hl drinks.

The company believes that current EU alcohol policy posits a danger to beer sales in Germany, which have been in decline in the past 30 years anyway. The brewing industry endorses the moderate consumption of beer, which is part of our cultural heritage. The industry is thus campaigning against the across-the-board restrictions imposed by the EU, which oppose pleasure and enjoyment and are detrimental to the economy.

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