Carlsberg Brewery Malaysia Bhd, anticipating a 20 per cent increase in raw material prices and inflation at around three per cent this year, is expected to increase the price of its beer this year but has yet to decide on the quantum.
"The price will be increased, but it is certainly not in double digit. We will never jump to something as dramatic as double digit (percentage rise)," said its Managing Director, Soren Ravn, at a media briefing on the company's financial performance today.
"I don't think it will be possible for us to compensate the expected increase in raw material prices this year," he said.
Carlsberg Malaysia, which is estimated to capture around 41 per cent share of the beer market in Malaysia, last increased the price by three per cent in April 2011.
Ravn said the company will be investing more in advertising and promotion this year with the UEFA Euro 2012 football championship to be held in June as a key catalyst. The Carlsberg Group is the beer sponsor for UEFA Euro 2012.
On the beer market in Malaysia, Ravn said he expected it to grow this year but at a couple of per cent.
Singapore meanwhile will be growing at twice the rate of Malaysia because of its large expatriate population and no import duties, he added.
The growth will therefore come from selling more premium beer and more channel mix, he said, adding that the rate of the market growth here was more similar to Europe rather than China and India as both were growing at double digit.
He said Carlsberg Malaysia also aimed to produce more premium beer locally, starting with the Asahi Super Dry at the end of 2011 and the Kronenbourg in three to six months.
Ravn also expected Carlsberg to increase its market share in the premium beer segment up to 20 per cent this year from around 16 per cent currently with the key contributor being Asahi Super Dry beer.
He also said there were other Asian markets which had indicated that they were keen to source premium beer from Malaysia.
Carlsberg Malaysia aims to be the regional hub for their beer in the Asian market, he said, adding that it would start with Singapore, later Hong Kong or China.
Carlsberg Malaysia's profit after tax for the financial year ended Dec 31, 2011 rose 24.8 per cent to RM167.4 million. -- Bernama
"The price will be increased, but it is certainly not in double digit. We will never jump to something as dramatic as double digit (percentage rise)," said its Managing Director, Soren Ravn, at a media briefing on the company's financial performance today.
"I don't think it will be possible for us to compensate the expected increase in raw material prices this year," he said.
Carlsberg Malaysia, which is estimated to capture around 41 per cent share of the beer market in Malaysia, last increased the price by three per cent in April 2011.
Ravn said the company will be investing more in advertising and promotion this year with the UEFA Euro 2012 football championship to be held in June as a key catalyst. The Carlsberg Group is the beer sponsor for UEFA Euro 2012.
On the beer market in Malaysia, Ravn said he expected it to grow this year but at a couple of per cent.
Singapore meanwhile will be growing at twice the rate of Malaysia because of its large expatriate population and no import duties, he added.
The growth will therefore come from selling more premium beer and more channel mix, he said, adding that the rate of the market growth here was more similar to Europe rather than China and India as both were growing at double digit.
He said Carlsberg Malaysia also aimed to produce more premium beer locally, starting with the Asahi Super Dry at the end of 2011 and the Kronenbourg in three to six months.
Ravn also expected Carlsberg to increase its market share in the premium beer segment up to 20 per cent this year from around 16 per cent currently with the key contributor being Asahi Super Dry beer.
He also said there were other Asian markets which had indicated that they were keen to source premium beer from Malaysia.
Carlsberg Malaysia aims to be the regional hub for their beer in the Asian market, he said, adding that it would start with Singapore, later Hong Kong or China.
Carlsberg Malaysia's profit after tax for the financial year ended Dec 31, 2011 rose 24.8 per cent to RM167.4 million. -- Bernama
