Carlsberg sells Dresden brewery, increases China investment
The Dresden brewery employs 172 people and produces the Swiss beer brand Feldschlösschen for the Northern German market.
Core brand focus
Carlsberg said it is selling the brewery to Frankfurter Brauhaus in order to concentrate on its five core brands in Northern Germany: Carlsberg, Holsten, Lübzer, Duckstein, and Astra.
The disposal of the Dresden facility will result in a total non-cash loss of about DKK 130m (€17.4m) which will be included in special items for 2010. Cash proceeds from the disposal will be received in 2011.
China investment
Carlsberg published details of the sale yesterday having announced last week that it had increased its shareholding in Chongqing Brewery from 17.46 per cent to 29.71 per cent.
The move makes Carlsberg the biggest shareholder in Chongqing Brewery.
Carlsberg CEO Jørgen Buhl Rasmussen said the transaction is in line with the company strategy of increasing its presence in Asia and building a platform for long-term growth in the region.
Chongqing Brewery operates 16 breweries and in 2009 produced beer volumes of about 10m hl. Its biggest brand is Shancheng which has been accorded “China Famous Brand” status by the Chinese Government.
Having increased its shareholding in the company, Carlsberg said it plans to continue to explore opportunities for increased cooperation. The brewer said this would include sharing of best practices and the development of the flagship Shancheng brand.
