Kronenbourg brand will be the 2nd premium beer brand produced locally, Asahi Super Dry was the 1st premium beer brand produced in Malaysia since Dec last year. Ravn also said that there is interest from other markets to source Kronenbourg from Malaysia and expecting to export to Singapore, followed by Hong Kong and China. It will allow to match the local pricing of its competitors.
Unlike Asahi Super Dry, Ravn said Kronenbourg is owned by the Carlsberg Group (Major shareholder of Carlsberg Brewery (M)). This gives better control over the brand. Ravn also said Carlsberg has one or two secret brands in the pipeline to be launched later this year.
Carlsberg also continued to provide a dividend guidance of 50-70% payout,which has been in place since the 2008 acquisition of Carlsberg Singapore. It expects low-single digit industry volume growth in Malaysia(6% in 2011) and a faster rate of 6-8% in Singapore in 2012.
Highlights during FY2011 Result Briefing Meeting
- Carlsberg’s market share in Malaysia stands at >40%, unchanged from a year ago. In Singapore, it has 20% market share, up slightly from the previous year.
- It commands a 16% market share in the premium beer segment, with Hoegaarden, the No. 1 imported beer in Malaysia, being the biggest growth driver.
- Super-premium beers like Kronenbourg and Blanc will be priced at 10% higher than premium beers like Asahi which, in turn, will 10% more expensive than mainstream beer like Carlsberg Green Label.
- The qoq dip in 4Q11 Malaysian revenues was due to its practice of controlling its shipments, unlike its competitor. The company indicated that sales rebounded strongly in Jan 2012. It successfully maintained its cost per hectolitre despite an increase in the cost of goods sold.
- It will hold a 3-month promotional campaign for Euro 2012, starting in April 2012. Initiatives to grow its customer base include driving national key accounts (NKA) and organising big and impactful events to increase outlets’ traffic such as Malaysia’s very own Oktoberfest. It expects 2012 capex to be similar to 2011.
- Since 2010, the company has been unlocking bottlenecks at its factory to free up capacity for new products such as Asahi Super Dry and Kronenbourg. 65% of sales are done on-trade which is more profitable than off-trade sales.
- The on-trade breakdown is 1/3 modern-on-trade (pubs, clubs) and 2/3 traditional on-trade (coffee shops). However, the share of modern-on-trade is growing. There could be a slight increase in the A&P budget for 2012 due to Euro 2012 promotions.
For more information, please see the Carlsberg Malaysia FY2011 Results Analyst Briefing (28/Feb/2012).
About Kronenbourg
Beer type Pilsner
Alcohol by volume (ABV) 4,2 %
Origin Strassbourg, France
Available since 1947
France's top-selling beer - more than one out of every five beers sold in France is a Kronenbourg. Kronenbourg is a pils-type beer with a slight bitter note and good malt and hoppiness. The name comes from Cronenbourg a historical district of Strasbourg, where the brewery was built in the early part of the 19th century. The beer is made from selected barley, water drawn from the underground source below the brewery and hops, mainly the more bitter varieties. The result is a well-balanced brew with a smooth, well-rounded bitter note that is ideal for all occasions.
Carlsberg Brewery Malaysia Berhad is a Malaysia-based company engaged in the production of beer, stout, shandy and non-alcoholic beverages for distribution in the both Malaysian and for Export. It is also involved in the marketing and distribution of beer, stout, shandy and non-alcoholic beverages. The Company distributes its products under the brand names of Carlsberg, Tuborg, Corona, Budweiser, Stella Artois, Hoegaarden, Carlsberg Gold, Carlsberg Special Brew, SKOL, Danish Royal Stout, Jolly Shandy and Nutrimalt among orthers. The Company has three fully owned subsidiaries: Carlsberg Marketing Sdn. Bhd., Euro Distributors Sdn. Bhd., Carlsberg Singapore Pte. Ltd. and one owned at 70%: Luen Heng F & B Sdn. Bhd (distributing Premium Brand).
