The new business will be ‘a highly attractive supplier of beer and soft drinks in the UK with an efficient supply chain and distribution network that provides customers with a portfolio of market-leading brands and world-class service.’
That brings together Carlsberg Marston’s Brewing Company facilities and in-house secondary logistics operations (with 15 depots servicing customers across the UK) with the packaging and production capabilities of Britvic.
Unveiling the new Carlsberg Britvic leadership team, Carlsberg says that combining the beer and soft drink businesses will be a winning combination in the UK market.
It also helps Carlsberg strengthen its relationship with PepsiCo, seeing Carlsberg Britvic become the largest bottling partner for the American beverage giant in Europe.
From Pepsi MAX to Jimmy’s Iced Coffee
After two failed attempts, Carlsberg announced an agreement to acquire Britvic in July last year for £3.3bn ($4.23bn).
The move into soft drinks in the UK is a significant one and illustrates a broader shift from brewers to move beyond beer.
Britvic’s brands include big British names such as Robinsons, Tango and J2O. But it also has an exclusive licence with PepsiCo to make and sell brands such as Pepsi MAX, 7UP, Rockstar Energy and Lipton Ice Tea. It’s also diversified into areas such as plant-based milk (with Plenish) and iced coffee (acquiring Jimmy’s Iced Coffee in 2023). Revenues in 2023 reached £1.75bn, showing 6.6% year-on-year growth.
Carlsberg will take Britvic’s brands and business and create a single integrated beverage company in the UK called Carlsberg Britvic.
That business will have a portfolio of leading brands across both beer and soft drinks categories.
Speaking as Carlsberg announced the completion of the acquisition on Friday (17 January), Carlsberg Group CEO Jacob Aarup-Andersen said: “The Britvic acquisition is a pivotal milestone in the history of Carlsberg as we deepen our commitment to the UK market and write an ambitious next chapter in our growth story.
“Soft drinks is an attractive category that also brings significant synergies in combination with beer. Britvic is a large-scale, well-established business with a strong portfolio of much-loved own and partnership brands that has consistently delivered strong results.
“I’d like to congratulate our new senior leaders on their appointments today, and we’re delighted to welcome all our new Britvic colleagues to the Carlsberg Group. We look forward to enhancing our combined business across the UK and other markets, and to strengthening our existing ties with PepsiCo.”
Paul Davies, formerly CEO of Carlsberg Marston Brewing Company will take up the position as CEO of the newly formed Carlsberg Britvic in the United Kingdom, effective 17 January 2025 (Carlsberg has also taken full ownership of brewing business Carlsberg Marston: buying Marston’s Brewing Company’s 40% stake for £206m).
Davies began his Carlsberg career in Marketing with Carlsberg UK in 2007 and has subsequently held the positions of VP Marketing and VP Sales for Carlsberg Sweden, and VP Craft & Speciality for Carlsberg Group in Copenhagen. In January 2019 he was appointed Managing Director of Carlsberg Poland, where he was also Chairman of the Polish Brewers Association.
“This is a historic moment for everyone across our unique combined multi beverage business,” said Davies.
“Carlsberg Britvic combines the fantastic qualities of both businesses and our shared ambition to grow the UK beverage category through our unique proposition across soft drinks, beer and cider. We are all eager to build a successful future together as we create new opportunities, integrate our operations and continue to deliver excellent choice, product quality and service to our customers.”
Davies is joined by the new Carlsberg Britvic Executive team:
- Tom Smethers, Chief Financial Officer
- Ben Parker, VP Sales – Off Trade
- Chris Pratt, VP Sales – On Trade
- Bruce Dallas, VP Commercial Growth
- Russell Goldman, Managing Director Breakthrough Brands
- Nigel Paine, VP Production
- Sarah Perry, VP Customer Supply Chain
- Munnawar Chishty, Chief Marketing Officer
- Deborah Preston, VP Human Resources
- Kathryn Partridge, VP Corporate Affairs and Sustainability
- Chris Hancock, VP Transformation and Integration
While primarily focused in the UK, Britvic also has business in Ireland, France and Brazil. Pedro Magalhães retains his role as Managing Director of Britvic Brazil, and Kevin Donnelly retains his role as Managing Director of Britvic Ireland – with both markets now part of the Carlsberg Group.
Beyond beer
Carlsberg sees soft drinks as an important part of Western European markets. In fact, 16% of its volumes already come from soft drinks.
And beer and soft drinks are not so different when it comes to the beverage business: which Carlsberg says will create synergies and cost savings.
Take, for example, the R&D department: which will be able to collaborate and share resources on areas such as sustainability and flavor combinations.
Then there’s the logistics and distribution side: which can benefit from combined warehousing and inventory management, as well as improving the economics or serving smaller customers.
Both beer and soft drinks are commonly served in cans: creating an opportunity for joint procurement of cans and even the ability to potentially run beer and soft drink canning on the same line.