EURO2012: Tapping a pint of Carlsberg in less than three seconds
Turbo beer tapping equipment is to ensure that Carlsberg as a sponsor can serve approx. 1 million draught beers over the counter within 15 minutes during the European Championship football matches. Danske Invest has also taken a large swallow of the Carlsberg-share.
Celebration, football and a lager. The European football championship in Poland and Ukraine has started and the Danish brewery Carlsberg will be there as a key player. As one of the large sponsors of the football event, Carlsberg does not only expect to sell millions of litres of Carlsberg-bear but also to cement its brand as a leading beer brewery particularly in the Eastern European markets, which is where the championship is being held.
In order to get the most out of the sponsorship the brewery has prepared the event for years. Carlsberg has among others provided new turbo beer tapping equipment for the event to ensure that the spectators do not risk losing important minutes of the matches while they queue at the beer booths. The equipment can deliver a pint of Carlsberg in less than three seconds. In addition, fan camps close to the different stadiums have been established, and the largest one can hold 100,000 fans.
Goal: increased brand value
However, having access to selling huge amounts of beer is not the only gain in connection with Carlsberg’s sponsorship – which is estimated to cost the brewery approx. DKK half a billion. The increased brand value is worth its weight in gold for Carlsberg – especially in Eastern Europe and Russia which for years have been among Carlsberg’s large growth markets. It is, indeed, Carlsberg’s successful entrance into these markets that has motivated the Danske Invest Nordic sub-fund’s investment in the beer-share.
”Carlsberg has been successful in entering a series of growth markets including Eastern Europe (among others Russia) and Asia. Particularly Eastern Europe and Russia are today accounting for approx. 40% of Carlsberg’s total sales, while Asia has hit 20%. In this way Carlsberg has succeeded in expanding its business at a point in time when the established European market, all other things being equal, has limited growth potential.
A leading position
According to Jesper Poll it is also of great importance that Carlsberg has obtained a leading position in several markets into which the brewery has entered within recent years. Among these markets are Russia and Ukraine which are hosting the UEFA European Championship.
”It is also important that Carlsberg already has gained a leading position. Carlsberg is #1 in the Russian and Ukrainian beer market and has stronger earnings margins than its competitors. Thus, the company is very well positioned for additional growth,” explains Jesper Poll.
However, investing in Carlsberg is not all beer foam and team songs. According to Jesper Poll, Carlsberg has experienced to be squeezed in terms of growth – particularly in Russia – and the company has actually experienced falling sales here. The Russian government is worried about the population’s alcohol consumption, and this has led to more duties and changed rules in respect of alcohol product commercials - everything with a view to reducing the Russians’ alcohol consumption.
A challenge in Russia
”Carlsberg’s challenge in Russia is that the government has done much to put a damper on the Russians' alcohol consumption. The great culprit is, however, vodka and not beer. Thus, if the Russians can be motivated to drink beer instead of vodka, this will put a damper on the consumption of alcohol in favour of Carlsberg. However, in the event that the consumption of beer would increase, the government may introduce other measures to minimize the consumption of beer. But many analysts believe that the sale of beer will increase in Russia, when the government’s new rules and duties have been implemented," says Jesper Poll.
According to Carlsberg, the brewery has spent four years preparing for the European Football Championship in Poland and Ukraine. The brewery will, however, not make a guess at how much beer Carlsberg will sell in connection with the European Championship. It will depend on both the weather and the teams reaching the finals, the brewery explains.
Danske Invest Nordic holds Carlsberg in its portfolio. The Carlsberg-share has increased 7% since the turn of the year.
