Skip to main contentAccess keys help

[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 27 September 2005, 15:22 GMT 16:22 UK
Carlsberg in brewery closure plan
Carlsberg cans on production line
Carlsberg says its future lies in selling beer in Asia
Danish brewer Carlsberg is to cut a large number of its European breweries as part of a "programme of excellence".

The company, whose slogan is Probably The Best Lager in the World, has 30 breweries in nine European countries.

Reports in Denmark say half the sites are set to close, but a spokesman told the BBC this was a "rough estimate".

However, the firm did say western Europe was a mature, declining, market and that it wanted to concentrate on Asia, where consumption was growing.

'Efficient network'

The Copenhagen-based firm, which has admitted it is to close its headquarters at Valby in the city, has not put any timescale on its programme of closures.

"We have to build up an efficient network of breweries in western Europe, which will mean we have to close some breweries," the firm's international media spokesman Jens Peter Skaarup told the BBC.

"We are still carrying out research into this matter and will not be able to simply implement the closures in one or two years.

"We have not yet identified where we will be closing - it depends on market developments in different countries."

He said the number may be more or less than the 15 quoted in a Danish newspaper.

Future growth

In February, Carlsberg suffered a 3% fall in profits, due to waning demand and increased marketing costs.

At the time, it said it was looking to Russia and China to provide future growth.

At present, 60% of its profits are in western Europe, 30% in eastern Europe and 10% in Asia, and the firm hopes to boost its sales in the latter two markets over the coming years.

Last month, Carlsberg said it would need to cut costs by at least 500 million kroner ($81m; 67m euros; �45.58m) a year if it wanted to increase profitability.


SEE ALSO:
Brewers' profits lose their fizz
22 Feb 05 |  Business
Carlsberg profits lose some fizz
06 May 04 |  Business
Profits sink at Carlsberg
15 Aug 03 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

AmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific