## Carlsberg Shifts Strategy as Core Beer Sales Decline
In a significant strategic pivot, Danish brewing giant Carlsberg is dramatically altering its approach, prioritizing growth in non-beer categories. Now, core beer sales account for less than 50% of total revenue – a stark contrast to the company’s historical reliance on traditional lager sales.
CEO Jacob Aarup-Andersen attributes this shift to evolving consumer preferences, noting a growing appetite for moderation and exploration of alternative beverages, mirroring the increasing popularity of Pepsi.
## Diversification is Key: The Britvic Acquisition
The company’s commitment to its brewing heritage remains firmly in place, reinforced by Aarup-Andersen’s emphasis on Carlsberg’s established brewing DNA and tradition. However, acknowledging the need for diversification is paramount. The near-$3.8 billion acquisition of Britvic in 2025 served as a critical catalyst, nearly doubling Carlsberg’s soft drink sales and instantly bolstering its portfolio.
## Lagging Behind the Competition
Carlsberg’s strategic shift stands in contrast to its major competitors, AB InBev and Heineken. Bernstein analysts highlight that Carlsberg has historically lagged behind in terms of volume growth (1.8% over the past five years) compared to AB InBev’s 0.5% growth and Heineken’s decline of -0.8%. This gap underscores the challenges faced by the company in adapting to changing market dynamics.
## A Pragmatic Outlook
Carlsberg’s underlying margin has shown improvement, yet growth remains significantly reliant on its burgeoning soft drink and non-alcoholic beer segments. Aarup-Andersen is embracing a “very open mind,” actively seeking to anticipate, rather than react to, evolving consumer tastes. He recognizes potential headwinds, including anticipated improvements in consumer confidence this year alongside the ongoing impact of geopolitical instability, such as the Ukraine war, and US tariffs.
Prior to the Russian invasion, the company derived approximately half of its sales and profits from the Russian market. Carlsberg exited this market following the invasion.
## What This Means for Consumers
This move signals a broader trend within the beverage industry. Consumers are increasingly seeking variety and lower-alcohol options. Brands that can adapt and offer diversified portfolios are likely to thrive in the coming years. Expect to see more offerings from Carlsberg within the soft drink and non-alcoholic beer sectors.
## Pros and Cons
Pros:
Diversification mitigates risk, taps into growing consumer demand for variety, strengthens overall brand portfolio.
Cons:
Potential dilution of brand identity, reliance on new categories could expose the company to volatile market trends, requires significant investment in marketing and distribution for the expanded product range.
