MALAYSIA October 2019
 
Carlsberg relies on its Premium Beer category to strengthen market share
 
Carlsberg Malaysia is optimistic of the company’s growth led by its growing premium portfolio. This segment sustained double-digit volume growth of 22% as compared to the standard beer category (5%) in the first half of 2019, and it still has further room for growth after successfully penetrating the Malaysian beer market.
Carlsberg is now well-positioned to tap into the growing trend for premiumisation in the country which will translate to bigger market share. Carlsberg prides itself on its fastest-growing premium brand, 1664 Blanc due to its unique taste and lack of direct competitors in the market. This brand alone achieved 55% growth in sales volume during the 1st half of 2019, and it is expected to continue to be the main driver for the premium segment in the near future.
Carlsberg is also set to benefit from a potentially improved operating environment mainly in East Malaysia, as authorities appear more effective in clamping down contraband beer. This will most likely divert demand back to the legal market, thus benefitting brewers like Carlsberg.
There is also strong expectation that the upcoming Malaysia Budget 2020 is not likely to increase excise duty for beer further.
Carlsberg seems to be enjoying a bigger success story from its premiumisation strategy yielding 9?GR growth over a 5-year period as compared to Heineken Malaysia Bhd (5%).
 
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