Carlsberg is shifting some of its marketing focus to cheaper brands as consumers opted for cheaper beer in reduced quantities, though it maintained its full-year earnings forecast.
The brewer said on Thursday that beer sales volumes fell by 1.3% in the third quarter, noting declines in China, France and the UK.
Premium sales fell 0.5% in the quarter.
CEO of the company Jacob Aarup-Andersen told Reuters, “In Western Europe, there’s no doubt that the average consumer is holding back.
“In Asia, China stands out as a market where the consumer is very weak. Most other Asian markets are actually ok.”
Aarup-Andersen added that the company had not yet seen Chinese stimulus measures having any impact on consumer behaviour.
For years, brewers have relied on a strategy of developing and promoting their more expensive premium brands to offset an overall decline in drinking.
Aarup-Andersen said he remained confident in the long-term growth potential of premium beer and that the category will compromise a significantly larger portion of Carlsberg’s business in a decade.
For now, however, the company is adjusting its marketing.
“In markets where we are seeing a significant pressure on premium, we are reallocating some of our focus into making sure that we are promoting properly around the right mainstream brands,” he said.
Outlook
The world’s third-largest brewer – behind Anheuser-Busch InBev and Heineken – said third-quarter sales rose 1% to 20.5 billion Danish crowns.
In a poll gathered by the company, analysts had expected an average of 20.7 billion crowns.
Despite the shift in consumer behaviour, Carlsberg said it still expects full-year organic operating profit growth to be between 4% and 6%.
The company lifted its full-year guidance in August.
Carlsberg shares were 1.7% higher at 0914 GMT but were still trading near their lowest levels since April 2020.
Also on Thursday, AB InBev reported third-quarter profits, revenues and volumes behind forecasts.
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