Carlsberg to invest EUR 9.5 million in Serbia - Peach and ginger flavored Lav Beer as of April

Carslberg brewery is going to invest EUR 9.5 million in Serbia this year. As early as at the beginning of April they plan to introduce some big novelties in the Lav Beer line. Due to a quick growth of flavored beer sales, some new products will be added to the Lav Twist brand - Lav Twist with a flavor of peach and with a flavor of ginger. As of April, all these beers will be available to consumers in Serbia in non-returnable glass bottles of 0.4l and 0.25l.

The Carlsberg Serbia Group increased its market share last year to a record 27.4 percent, despite the fact that the beer market in Serbia sank 2 percent, it was announced at a press conference on Wednesday.

Overall sales grew 2 percent last year from 2011. The CEO of the Carlsberg Serbia Group, Ralph Zigerlig, said that the group's business model, driven by innovation, "has once again passed the test of the current economic crisis and the challenging business environment with high scores."

- Rapid penetration of the market with radler (flavored beers) and cyder (Somersby) products also contributed to our business growth. Therefore we believe that the Lav brand, with all the surprises we plan to make, is ready to assume a leading position in the Serbian beer market by 2015 - said Ralph Zigerlig, CEO of the Carlsberg Serbia Group.

(Ralph Zigerlig)

He also noted that a general downward trend in the beer market, which had begun October 2011, had continued in 2012 as well, adding that the premium segment was still stable.

They won't take part in the pricing game

Zigerlig explained that his company was not interested in the "pricing game" or economically unhealthy dumping because it can rely on the brands creating value for its consumers, partners as well as the company itself.

The key brand of the Carlsberg company - Lav Beer, has continued to grow and acquired a record market share of 25 percent, thus significantly cutting the edge of the current market leader - Jelen Beer.

As it was expected after a real craze for beers with a flavor of lemon, orange and grapefruit as well as apple, pear and blackberry flavored Somersby, the sales of these products soared, with Lav Twist sales growing 80 percent and Somersby sales rising 36 percent.

As Carlsberg managers pointed out, Somersby is the quickest-growing cyder brand in the world.

Overall sales of all products in the Carslberg portfolio grew 2 percent last year from the year before.

Exports also continued to grow, with 25.1 percent of the total production exported in 2012, up 6.1 percent from 2011. Products from the brewery in Celarevo were exported to countries in the region (Hungary, Croatia, Bulgaria, Greece, Bosnia-Herzegovina and Montenegro), other EU countries (Austria, Czech Republic and Slovakia), as well as to far away countries like Israel and Australia.

Carlsberg sells Sinalco brands

In early March the Carlsberg Serbia Group got an exclusive right to sell Sinalco brands in Serbia and Montenegro, which will have a positive synergy effect on its operations in Serbia in 2013, Zigerlig explained.

People at this company said that a newly-established division within their group, dubbed House of Beer, would work on further development of premium and super-premium brands - beers Guinness, Kilkenny, Erdinger, Corona, Budweiser Budvar, Grimbergen, Kronenbourg 1664, Erdinger Dunkel, and Budweiser Budvar Draught. Although our people prefer cheaper beers, the sales of these "expensive" brands are not dropping.

Carlsberg also announced that it would hire another 28 workers in order to support the further growth of business, and the company will also continue to invest in the development of talents through the Future Leaders Program and its internal training program.

Since 2003, when it started operating in Serbia, the Carlsberg Serbia Group has invested EUR 170 million in the expansion of its production and logistics capacities and in the development of new brands and distribution channels. Also, in 2012, this company paid close to RSD 4 billion in taxes to the national budget and the budgets of local self-governments.

The Carlsberg Serbia Group was one of the finalists for this year's Aurea Investment of the Year Award. They were shortlisted mainly owing to the fact that they were the first company in Serbia to obtain a license to distribute and sell supercompost - a soil amendment and fertilizer that is created as a by-product of the wastewater treatment process at the brewery in Celarevo..

J.Dj.