By Dominic Chopping
Carlsberg on Thursday announced a new five-year strategy that will see the Danish brewer increase its financial and sustainability ambitions as well as seek more growth from non-beer drinks.
The new strategy, known as SAIL'27, targets organic revenue growth of 3%-5%, organic operating profit growth above revenue growth, a continued focus on return on invested capital and new sustainability targets.
Within its portfolio, Carlsberg said it will "more forcefully" expand in the premium segment, strengthen its core mainstream beer offering, accelerate alcohol-free volumes and extend its focus to other beverages beyond beer.
"Consumers are increasingly looking for beverages outside the beer category, such as cider, hard lemonade, hard seltzers and ready-to-drink cocktails," it said.
"Both Somersby [cider] and Garage [alcoholic lemonade] have proven scalable across markets, and we aim to expand them in new markets, applying repeatable business models. In addition, we will apply repeatable proven models and develop new propositions for other existing well-known and trusted brands," it said.
On a regional basis, Carlsberg said it will increase margins in western Europe, accelerate in core markets in Asia, drive value and build scale in central and eastern Europe.
SAIL'27 will also see the company expand the scope of its sustainability program, raise ambitions and launch an expanded environmental, social, and governance program.
The new Together Towards Zero and Beyond program focuses on four existing priorities, namely zero carbon footprint, zero water waste, zero irresponsible drinking and a zero accidents culture, it said.
In addition, it will introduce sustainable agriculture and packaging as focus areas, including specific and measurable targets.
Carlsberg said its approach to capital allocation remains unchanged from its now completed SAIL'22 strategy.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
02-03-22 1158ET
