Carlsberg has said its market share in the UK has been hit by consumers desire to trade up from mainstream brands.
Reporting on results for the first quarter of 2018, the group said that trade in the UK had been “impacted by the continued challenges of the Carlsberg brand”.
Speaking to analysts after the publication of the results, chief executive Cees ’t Hart said: “The market share loss (in the UK) is mainly driven by, first of all, decline in mainstream segment, as consumers are trading up. And we over index in mainstream and second thing is that the Carlsberg brand continues to lose market share in the mainstream segment. We see Carlsberg Export doing better, because of the new advertising, but Carlsberg Green, as it is called, is continuing to lose some market share and we will come of course, with collecting (sic) measures.”
Globally, the group saw organic net revenue growth of 2% with a reported decline of 5% to DKK 12.7bn due to currencies (-5%) and disposals (-2%). It reported price/mix improvement of 1% and total organic volume growth of 1%.
In terms of brands, Tuborg grew volumes 11% while Carlsberg was flat, Grimbergen up 12% and 1664 Blanc +44%. Craft & speciality brands saw volume growth of 30%, and alcohol-free brew volume growth of 23% in Western Europe.