carlsberg project
1. Introduction
1.1 Motivation
Carlsberg is one of the leading breweries in the world, and in the meantime it is one of the fastest growing and best-known beer brands worldwide. A key part of Carlsberg’s strategy is to drive both domestic and international markets, in order to achieve a sustainable growth. Nowadays, the globalization narrows down the distance of the world and makes it easier for companies to enter to an unknown market compared to just a decade ago. Their business is focused in the three regions of the world which are Western Europe, Eastern Europe and Asia1.2012 annual report showed that Western Europe market declined by 3%2 and Eastern Europe beer market was reported as flat3. Only the Asian market showed strong growth over the year4. A firm seeking to enter a foreign market must make an important strategic decision on which entry mode to use for that specific market. In this case it would be interesting to focus on Brazil as the potential market because we see an opportunity for Carlsberg group to extend their business area. Brazil is now represented as the 3rd largest market for beer in the world and as well is one of the BRIC countries. In fact, the Brazilian beer consumption has grown so fast so they have one the highest per capita consumption rates in the world (67liters annually). According to a report by research firm Bernstein, Brazilian beer sales are expected to gain a $300 million boost when the world cup 2014 kicks off next year.
1.2 Company background
Carlsberg brewery was founded by J.C. Jacobsen in 1847 outside the Copenhagen, Denmark. The first export begun at 1868 by sending one barrel of beer to Edinburg, Scotland.5 Later on Mr. Jacobsen created Carlsberg foundation and Carlsberg Laboratory.
The Carlsberg Group is the fourth largest brewer in the world. The Group employs 41,000 people and is characterized by a high degree of diversity of brands, markets, and cultures. The product portfolio consists of more than
1.1 Motivation
Carlsberg is one of the leading breweries in the world, and in the meantime it is one of the fastest growing and best-known beer brands worldwide. A key part of Carlsberg’s strategy is to drive both domestic and international markets, in order to achieve a sustainable growth. Nowadays, the globalization narrows down the distance of the world and makes it easier for companies to enter to an unknown market compared to just a decade ago. Their business is focused in the three regions of the world which are Western Europe, Eastern Europe and Asia1.2012 annual report showed that Western Europe market declined by 3%2 and Eastern Europe beer market was reported as flat3. Only the Asian market showed strong growth over the year4. A firm seeking to enter a foreign market must make an important strategic decision on which entry mode to use for that specific market. In this case it would be interesting to focus on Brazil as the potential market because we see an opportunity for Carlsberg group to extend their business area. Brazil is now represented as the 3rd largest market for beer in the world and as well is one of the BRIC countries. In fact, the Brazilian beer consumption has grown so fast so they have one the highest per capita consumption rates in the world (67liters annually). According to a report by research firm Bernstein, Brazilian beer sales are expected to gain a $300 million boost when the world cup 2014 kicks off next year.
1.2 Company background
Carlsberg brewery was founded by J.C. Jacobsen in 1847 outside the Copenhagen, Denmark. The first export begun at 1868 by sending one barrel of beer to Edinburg, Scotland.5 Later on Mr. Jacobsen created Carlsberg foundation and Carlsberg Laboratory.
The Carlsberg Group is the fourth largest brewer in the world. The Group employs 41,000 people and is characterized by a high degree of diversity of brands, markets, and cultures. The product portfolio consists of more than