Carlsberg As Class A · OMXCOP:CARL_A
Carlsberg As Class A — Investor Presentation (2005)
37 slides from Carlsberg As Class A's investor presentation, 2005
Slide 1: Carlsberg Strategy in the Premium Segment
Carlsberg Strategy in the Premium Segment
Slide 2: Discussion Topics
Discussion Topics 1. China Beer Market Overview 2. Carlsberg Brand in China 3. Carlsberg Green Label Activities 4. Case Study – Carlsberg Chill Key to Success - China is huge and complex - Right Product and Strategy - Right People and Culture - Excellent Implementation
Slide 3: China Beer Market Overview
Discussion Topics 1. China Beer Market Overview
Slide 4: Characteristics of China
Characteristics of China China is not just a country, it’s a “Europe” • Language Each province could be seen as a • Size of population country with unique market • Life style dynamics • Living standard among provinces • Distribution of wealth within city - huge population of rural - Mid-class is evo
Slide 5: Beer Production Volume in 20 years
Beer Production Volume in 20 years 350 • Average 6% growth p.a. 40% • Increasing consolidation 308 35% 300 291 254 30% 250 223 224 238 207 25% 199.3 200 185 20% 168.2 156.9 150 141.5 15% 119.2 102.1 10% 100 83.8 65.6 64.3 69.2 5% 54 41.3 50 31 0% 0 -5% 1985 1986 1987 1988 1989 1990 1991 1992 1993 19
Slide 6: The Pyramid
The Pyramid Foreign Premium Segment: 1% (Carlsberg, Heineken, Budweiser) Local Premium segment: 2% (mainly Big bottle) Mainstream segment: 97% (Incl. Tsingtao, Yanjing, Huanghe, Dali, Snowflake, Suntory)
Slide 7: Price Gap between Premium and Mainstream Segment
Price Gap between Premium and Mainstream Segment • Total Beer Production in China in 2004 is about 291mHL • Segment by retail selling price (RSP) • Local mainstream: US$0.2 to US$0.4 per 640mL Quart bottle • Premium: US$0.6 to 0.8 per 640mL Quart bottle A very big price gap between premium and local
Slide 8: Price Gap within Premium Segment
Price Gap within Premium Segment (Premium segment in US$) 640ml QT 330 PT 355 Can Ex-brewery per unit 0.6 0.6 0.55 For historical reason, prices of 355ml Can and 330ml Pint are very expensive -> Premium Image • Not many outlets carry Pint/Can, mainly night entertainment outlets • Only premium brands
Slide 9: Beer Market Dynamic In Summary
Beer Market Dynamic In Summary • Total Beer Market in China in 2004 is about 291mHL • Segment by retail selling price (RSP) • Local mainstream – very low price • Premium • Reasonable price on Big bottle (640mL) • High price for 330mL Pint bottle (premium image) • Premium segment accounts for 3% (abo
Slide 10: Carlsberg Strategy in China: Two-prong approach
Carlsberg Strategy in China Two-prong approach • Premium segment – Carlsberg brand - Carlsberg Green Label, Carlsberg Chill • Local mainstream segment – Local brands - Acquiring local breweries and local brands - Consolidation and expansion
Slide 11: Discussion Topics
Discussion Topics 1. China Beer Market Overview 2. Carlsberg Brand in China
Slide 12: Carlsberg Brand Commercial Set-up in China
Carlsberg Brand Commercial Set-up in China 4 regional offices in China Have branch or representative offices in almost each provincial city HEILONGJIANG Harbin Urumqi JILIN XINJIANG LIAONING Shenyang GANSU INNER MONGOLIA BEIJING Dalian North region branch/rep office TIANJING HEBEI NINGXIA SHANXI Shi
Slide 13: Carlsberg Presence in China
Carlsberg Presence in China • The No.1 premium draught brand in China • One of the Top 3 premium brands in China • Consecutive annual growth in Pint/Can/Draught volume since 1996 (except in 2003 due to SARS) • Expecting a 20% growth in Pint/Can/Draught volume in 2005 • Good foundation across China
Slide 14: Discussion Topics
Discussion Topics 1. China Beer Market Overview 2. Carlsberg Brand in China 3. Carlsberg Green Label Activities
Slide 15: New Packaging (Transparent Label and Glow Can)
New Packaging (Transparent Label and Glow Can)
Slide 16: Young and Contemporary thematic visuals
Young and Contemporary thematic visuals
Slide 17: Extensive Visibility
¥ Gilsberg Carlsberg Breweries A/S Extensive Visibility
Slide 18: PR campaign to Press and Opinion Leader
PR campaign to Press and Opinion Leader Press kit with PR articles, leaflet, new NLL bottle, opener & Glass
Slide 19: Press releases
REPOTARERH. AA eH MEN ASS ee RUB TEA. AH ROKER. ARKH HEB etA 7h #2). STAPTMRESS PAPEL ARR. SLOSS RAMARMS. CREME ATRL AMARA. BD STH Hae EK. Carlsberg Breweries A/S MLAS Lat ie HE AAR AR. FLOH4VAow SE UR ES WS RA SAMA M 8s SARUM F FEMA ARKSORES LS theme [fate mi 2eSEMMRARECRES TERRA ARE. HILTmtH DAMRA
Slide 20: Tailor made educational POS
Tailor made educational POS How to appreciate the best draught beer • CO2 Content • Constant best Temperature for beer • How to pour draught from tap
Slide 21: Consumer interactive
Consumer interactive Mobile draught unit for consumer to experience pouring Beer buster games for Fun
Slide 22: Liverpool Promotion (Soccer)
Liverpool Promotion (Soccer) To celebrate the SUCCESS
Slide 23: Discussion Topics
Discussion Topics 1. China Beer Market Overview 2. Carlsberg Brand in China 3. Carlsberg Green Label Activities 4. Case Study – Carlsberg Chill
Slide 24: To conquer the Premium Segment with Carlsberg
To conquer the Premium Segment with Carlsberg Why • China is one of the fastest growing beer market • Carlsberg is already well established in the whole China, a leading brand in some cities and one of the top 3 overall - Well-accepted brand image - Good distribution network and people • Long term p
Slide 25: Suits the local taste preference (bitterness level BU)
Suits the local taste preference (bitterness level BU) No. of Brands 7 7 Majority consumers prefer low-BU beers 6 26 out of 34 well-known brands are 5 5 at BU from 6 to 14 5 Carlsberg Green Label is 18 – on 4 the high side 4 3 3 3 2 2 1 1 1 1 1 0 0 0 -7 -9 1 2 3 4 5 6 7 8 9 0 -10 1-1 1-1 1-1 1-1 1-1
Slide 26: Great Market Opportunity to Carlsberg
Great Market Opportunity to Carlsberg • Carlsberg – high nationwide reputation in Superb Quality and International • Established strong market presence • All we need is a strong portfolio • Green Label with an authentic European beer taste • A line extension with an easy-to-drink beer taste – Carlsb
Slide 27: Challenges
Challenges • China is not one country -> like Europe • We need • Right strategy • Right people for excellent implementation Step-by-Step with full commitment - Conquer the North and West first - Full support in advertising and promotion - Milestones on volume, distribution and image - Expand strong
Slide 28: Chill Out music album and Disco Party
Chill Out music album and Disco Party To Strengthen the music association
Slide 29: Rave party in Great Wall
Rave party in Great Wall To be Innovative and Contemporary
Slide 30: Outlet visibility drive still going on..
Outlet visibility drive still going on..
Slide 31: Thanks to the great team efforts – It's a big success
Thanks to the great team efforts – It’s a big success • Year-to-date sales in launched cities are 40% above last year same period • Overall speaking: • Over 60% target consumers know Carlsberg Chill (without TV advertising) • Over 40% target consumers have tried the product and majority of them like
Slide 32: 2005 Chill Advertising Campaign
2005 Chill Advertising Campaign Carlsberg Chill is the catalyst to Chill Out and Connected. It’s for all your friends and you to instantly feel "free". With Carlsberg Chill you can altogether enjoy the "nightlife" by having fun connecting with your friends as it would last forever. Carlsberg Chill =
Slide 33: The Thematic Visual
The Thematic Visual Icy Refreshing Unleash Inner You
Slide 34: Again, the implementation …… Outdoor
Again, the implementation …… Outdoor
Slide 35: …. Indoor …. and
Carlsberg Breweries A/S .... Indoor .... and
Slide 36: The Television Commercials
Carlsberg Breweries A/S The Television Commercials
Slide 37: Thank you!
Key to Success - China is huge and complex - Right Product and Strategy - Right People and Culture Thank you! - Excellent Implementation