On this page, you will find answers to frequently asked questions. Click on the relevant topic to go directly to FAQ section.
The Group launched its SAIL’22 strategy in March 2016. As the name suggests, it is coming to an end in 2022.
In February 2022, the Group announced its next strategy, SAIL’27. An evolution of SAIL’22, SAIL’27 is built around the Group’s purpose of brewing for a better today and tomorrow, and our ambition of being the most successful, professional and attractive brewer in our markets.
SAIL’27 focuses on five strategic levers – portfolio, geographies, execution, culture and funding the journey – for which we have made distinct strategic choices, defining the focus of our efforts and resource allocation. The strategic levers and choices should be viewed as an integrated set of activities that together will drive shareholder value.
Read more about SAIL’27 here.
By executing SAIL’27, we believe we can successfully capture long-term growth opportunities. Our ambitions for the SAIL’27 period are:
Read more about SAIL’27 here.
Due to the many uncertainties, the volatility and large margin differentials between markets, brands and categories, it is very difficult to predict future percentage margins. However, we intend to grow organic operating profit faster than revenue, thereby improving operating margin over time.
According to Danish regulations, a listed company must provide the market with its expectations for the coming fiscal year. These should be expressed as the expected level for key figures, such as revenue or earnings. The expectations should include the underlying key assumptions.
The Danish FSA considers any changes to previously announced expectations as insider information. Consequently, as soon as the company has this information, it must be disclosed. Disclosure cannot be postponed and included in the next quarterly announcement.
Our capital allocation principles have been unchanged since 2016:
Since the initiation of the first recent share buy-back programme in February 2019, the buy-back programme has been split into half-year or quarterly tranches in order to give the Group the flexibility to adjust for M&As and overall business development. Read more about dividends and share buy-back here.
We have a number 1 or 2 position in 21 markets across our three regions:
Approx. 60% of total volumes are sold in emerging markets (excluding Russia), calculated using the MSCI classification (although we have included Greece as a developed market).
Tuborg is our largest brand, accounting for approximately 15% of total volumes.
Carlsberg is our second largest brand, accounting for around 10% of total volumes.
Alcohol-free brews (fermented products with less than 0.5% ABV) account for approx. 3% of total volumes.
Low- and no-alcoholic products, defined as all products (water, soft-drinks and beers etc) with less than 3.5% ABV, account for approx. 27% of total volumes.
The definition of premium beer is beer sold at price index > 120 compared to mainstream (there may be differences in classifications due to local circumstances). As a consequence, a brand can be mainstream in one market but premium in another depending in the local positioning. Premium beer is approximately 20% of total volumes.
Core beer comprise our strong local mainstream brands.
Other beverages (approximately 15% of total volumes) include soft drinks, water, energy drinks etc.
We are Pepsi bottlers in Norway, Sweden, Switzerland, Cambodia and Laos.
We are Coca-Cola bottlers in Denmark and Finland.
In 2021, on-trade accounted for around 22% of Group volumes, while in 2019 (pre-pandemic) the share was around 25%.
Our ESG programme Together Towards ZERO and Beyond is based on our most material issues, and includes ambitious targets for sustainable agriculture, reducing packaging waste, eliminating carbon emissions and reducing water consumption. It also encompass our actions to source responsibly, promote diversity, equity and inclusion, respect human rights, live by our Compass and engage communities responsibly.
Read more about Together Towards ZERO and Beyond here.
Packaging mix is (2021): Cans 33%, refillable glass bottles 26%, non-refillable glass bottles 14%, PET 21%, kegs 5%, bulk 1% and other 1%. Read more in our sustainability report here.
Thermal energy break-down (2021) is natural gas 77.6%, coal 0.6%, district heating 3.2%, district heating from renewable energy 3.0%, heavy fuel 2.6%, renewable energy 9.9% and light fuel 3.1%. Read more in our sustainability report here.
DE&I is important for Carlsberg. The long-term ambition is to reach minimum 40% share of females in senior leadership roles (April 2022: 27%).
In the Supervisory Board, the objective is to achieve a gender diversity target of 40%. The current gender balance on the Supervisory Board, including employee representatives, is 36%. Excluding the employee representatives, the gender balance is 33%.
Our SAIL’27 strategy focuses on driving organic top- and bottom-line growth. However, if value-accretive acquisition opportunities arise, we want to participate.
Our overall executive remuneration packages are set to align with our ambition, our strategic priorities and our purpose of brewing for a better today and tomorrow. Executive remuneration includes a fixed salary, variable incentive awards in the form of an annual cash bonus (short-term incentive) and participation in long-term incentive awards and other usual benefits. Since 2016, the long-term incentive award has been awarded as performance shares.
Read our Remuneration Policy here.
In 2021, the annual bonus comprised two elements. The first element, accounting for 80% of the bonus, was based on four financial measures: organic revenue growth, organic operating profit, addressable cash flow and a Funding the Journey savings target. The second element, accounting for 20%, was linked to our ESG programme based on targets around carbon emissions and water usage, development of AFB volumes, and diversity and inclusion.
The KPIs in the long-term incentive plan for 2021-2023 included relative total shareholder return (TSR), growth in adjusted EPS at constant currencies, organic revenue growth and ROIC at constant currencies. Each KPI accounted for 25% .
Read more in the Remuneration Report here.
The Carlsberg Foundation currently has three representatives in the Supervisory Board. From the AGM in 2023, the representation will be reduced to two members. A representative from the Carlsberg Foundation holds the position of Deputy Chair. Read more about corporate governance here.
This is required by Danish law.
Yes. Our SpeakUp line is available for everyone internally and externally. Reports can be made anonymously. Read more here.
What does COGS comprise?
The rule-of-thumb for COGS, excluding the purchases of finished goods, at Group level is as follows:
1) Approx. 25% of COGS are raw materials, such as malt, un-malted barley, wheat, rice, sugar, hops etc. The largest raw material is malt, accounting for approx. 40% of raw materials costs. Looking at malt specifically, c. 50% is barley and c. 50% is conversion cost.
2) Approx. 45% of COGS are packaging materials, such as aluminium, glass, PET for both primary and secondary packaging, paper and cardboard, caps, labels, pallets and so on. The largest packaging category is cans, accounting for around 40% of our packaging costs. For cans, around 50% are the aluminium costs and 50% are conversion cost.
3) The remaining 30% of COGS are non-material costs, such as labour, utilities, depreciation and so on.
The break-down can vary significantly year-by-year and country-by-country.
Do you hedge commodities and what is the policy?
Yes, we hedge commodities to minimise risk and create transparency.
For malt (barley) and aluminum, the two most significant commodity exposures, Group policy is to have a minimum of 70% hedged for a given year no later than by the end of the third quarter of the previous year, with a target hedge ratio of 90% at the beginning of the year in question.
Read more about hedging in the the Annual Report, page 60.
Carlsberg A/S is the listed entity that own 100% of Carlsberg Breweries A/S that own all operating companies. Carlsberg A/S has no other major activities.
In December 2020, we merged our fully controlled Chinese assets with the brewery assets of Chongqing Brewery Company (listed on the Shanghai Stock Exchange) into an existing JV: Chongqing Jianiang.
The Carlsberg Group owns 60% of Chongqing Brewery Company, while the remaining 40% is free float. The JV Chongqing Jianiang is owned 49% by Carlsberg Group and 51% by Chongqing Brewery Company.
Consequently, the Carlsberg Group’s total economic interest in Chongqing Jianiang (where all brewery activities are placed) is 79%.
The Chinese business is fully consolidated in Carlsberg Group accounts.
The Group fully consolidates the Indian business. In accordance with the Group’s accounting policy, shares subject to put options are consolidated as if the shares had already been acquired. The 100% ownership percentage at which the Indian business is consolidated therefore differs from the legal ownership interest retained by the Group. Consequently, full ownership will not lead to a change in account treatment.
From 1 January 2022, the Nepalese business is deconsolidated due to actions by the local minority shareholder who owns 10% of the shares. The local shareholder is limiting our influence on the operations, in violation of our legal and contractual rights. We are contesting the actions in Nepal through the local courts and we expect that the operations and management of the Nepalese business eventually will be normalised in line with the our legal and contractual rights.
As of 1 January 2022, the Russian business is, for reporting purposes, no longer included in the Central & Eastern Europe region.
In the Group’s income statement, the net result from the Russian business is presented separately as “Net result from Russian operations held for sale” below profit after tax. 2021 numbers have been restated accordingly.
The Carlsberg Group acknowledges the legitimate interest of shareholders and other stakeholders in transparency on multinational corporations’ tax policies and tax payments . In 2021, we thoroughly reviewed our Tax Policy and disclosure and assessed the feasibility of public country-by-country tax reporting. The conclusion of this assessment was that until such country-based reporting applies to the entire industry, it may result in a competitive disadvantage for Carlsberg.
The Carlsberg Group remains committed to and supports the tax transparency agenda. Consequently, we have expanded the “Economic Contribution” section in the Sustainability Report to include a breakdown of our tax contribution and effective corporate tax rate per region.
The non-controlling interest mainly relates to our business in China, Laos, Malaysia and the UK where we don’t have 100% control of the businesses.
That relates to entities where we don’t have control and are mainly relatred to businesses in Portugal, Nepal, Myanmar and Carlsberg Byen. Read more in the Annual Report, page 103.