Value Creation 

In recent years there has been a growing focus on commercial initiatives to increase value and generate growth, but activities and target areas vary from region to region and from market to market.

To realise the growth strategy, it is essential to be in a position to respond quickly and effectively to new consumer trends. First and foremost, this requires a systematic and targeted approach to innovation. As well as developing the product range locally, efforts will increasingly be concentrated on larger international launch concepts. Carlsberg will sharpen its focus not only on developing and launching new products but also on enhancements and innovations for existing products, such as new flavours or new types of packaging, in response to growing sales from convenience stores. In recent years, Carlsberg has developed and marketed a number of new products and initiatives internationally in both beer and other beverages, and this work will be intensified in the future. To further improve these capabilities, a new integrated innovation organisation and structure was implemented in early 2009.

Commercial execution will also be on the agenda in the years ahead. An example within this area is the development of sophisticated methods and intelligent tools that have been taken into use for analysing consumer behaviour with a view to improving product placement and sales in locations such as supermarkets, convenience stores, restaurants, cafés and bars.

Efficiency initiatives

The efficiency initiatives are about constantly reducing the cost base across the Group. They are also about optimising the brewery and distribution structure and as a result of this, the proposed closure of the brewery in Leeds, United Kingdom, by 2011 was announced in 2008. In 2009, breweries in Norway and Germany were either closed or sold. These announcements follow plant closures in recent years in Denmark, Portugal, Switzerland, Italy and Finland. Closures continue to be on the agenda in the coming years.

In recent years, Carlsberg has implemented a number of Excellence programmes which have covered systematic streamlining of processes and procedures in areas such as production, logistics, procurement and administration. Excellence initiatives will continue in Carlsberg. In mature markets where the first wave of these programmes has already taken place, second-wave initiatives are now being rolled out, building on the experience and knowledge acquired through the execution of the first round. In less mature markets, Excellence programmes are being rolled out in a modified form so that the cost base here too can be optimised. Major programmes were initiated in Eastern Europe during the second half of 2008.

An important initiative is the continued work on globalising and centralising procurement at Group level to ensure the most favourable terms and conditions. Central procurement will be implemented across the cost categories of the business.

Another area that is being scrutinised is how to optimise the route to market in order to improve the service provided to our customers and consumers. This work is being done market by market to recognise the differences across markets.

Standardisation is the next phase in Carlsberg’s ongoing work to increase the efficiency of all parts of its business.

The aim of standardisation is to strike the best possible balance between centrally defined ways of running the business regardless of national and departmental boundaries, and respect and consideration for local markets, customers and consumption patterns.

This standardisation process will take a number of years. The fi rst phase has involved identifying and mapping the many operational and administrative processes in the Carlsberg Group with a view to designing and optimising uniform procedures and IT systems across the Group’s companies. As with previous projects, the standardisation project will be rolled out first in the mature European markets and subsequently in the Group’s other markets. Besides creating immediate synergies by reducing the complexity of the Group, standardisation will result in greater transparency across the Company, which will provide new opportunities to optimise working methods and processes. This will also be a key lever for more accurate and faster decision-making.

People

Continuous development of the Group’s employees is an important part of everyday life at Carlsberg. This ongoing work is supplemented with a number of programmes spanning not only management development but also talent development, internal academies for production, procurement and marketing, and personal development programmes for both managers and other employees at various levels of the organisation.