Carlsberg Business Model Canvas

Carlsberg collaborates with a wide spectrum of retail partners, encompassing supermarkets, convenience stores, and specialized liquor outlets. These partnerships are crucial for reaching consumers directly and driving sales of their extensive beer and beverage range.

The company also maintains strong ties with on-trade partners, including bars, restaurants, and hotels, which serve as vital points of consumer experience and consumption. In 2024, Carlsberg continued to emphasize building deeper engagement and loyalty with both customers and end-consumers across these diverse channels.

Carlsberg's key partnerships are foundational to its global operations, enabling market access, innovation, and supply chain resilience. These collaborations span distribution, raw material sourcing, retail and on-trade engagement, and technology development. By leveraging these alliances, Carlsberg effectively navigates diverse markets and enhances its product offerings.

In 2024, Carlsberg continued to strengthen its ties with raw material suppliers, with a particular emphasis on sustainable sourcing. For instance, the company is increasing its use of barley grown using regenerative farming practices, with these ingredients scheduled for wider use from 2025 onwards. This commitment underscores a dual focus on ingredient quality and environmental stewardship.

The company's strategic alliances with technology providers and research institutions are critical for driving innovation. These partnerships focus on improving brewing techniques, developing advanced packaging solutions, and implementing robust sustainability strategies. In 2024, Carlsberg's digital transformation efforts included leveraging these collaborations to enhance supply chain visibility and optimize production processes.

Carlsberg's distribution and logistics involve the crucial task of getting their beverages from breweries to customers efficiently. This means managing warehouses, transportation, and inventory to ensure products arrive fresh and on time. In 2024, Carlsberg continued to optimize its global supply chain, a complex operation for a company with breweries and markets spanning numerous countries.

The company leverages its extensive network to maintain product quality and availability. This includes strategic warehousing and transportation solutions designed to minimize lead times and costs. For instance, their focus on supply chain efficiencies aims to reduce waste and improve delivery speed, a key factor in the competitive beverage market.

Carlsberg's key activities are centered on its extensive brewing operations, encompassing the entire production cycle from sourcing raw materials to final packaging. This is supported by robust brand management and marketing, aimed at fostering consumer loyalty through diverse product portfolios and strategic sponsorships. Furthermore, efficient distribution and logistics are critical for ensuring product availability, while continuous investment in R&D drives innovation in both products and sustainable practices.

Carlsberg's human capital is a cornerstone of its business, with over 30,000 employees globally. This workforce includes highly skilled master brewers, innovative marketing specialists, efficient supply chain experts, and dedicated sales teams. Their collective knowledge and expertise are critical for driving innovation in product development and ensuring operational excellence across the company.

The company actively focuses on engaging and motivating its workforce, recognizing that human capital is a key driver of competitive advantage. In 2023, Carlsberg reported a strong commitment to employee development and well-being, which directly translates into enhanced market execution and customer engagement. This investment in people underpins their ability to adapt to evolving market demands and maintain high standards of quality.

Carlsberg's intellectual property is a significant asset, encompassing a vast array of patents, trademarks, and proprietary brewing techniques. This intellectual capital underpins the quality and distinctiveness of its products, providing a strong competitive edge in the global market.

The company actively protects and leverages its intellectual property through strategic brand management and ongoing innovation. This focus ensures that its brands remain recognizable and trusted by consumers, contributing to sustained market leadership and premium positioning.

Carlsberg's commitment to innovation is evident in its continuous investment in research and development. This dedication allows the company to introduce new products, improve existing ones, and explore novel brewing processes, thereby maintaining its relevance and appeal in a dynamic industry.

Carlsberg's global availability is a cornerstone of its business model, ensuring its diverse portfolio of beverages reaches consumers across numerous markets. This extensive reach is facilitated by a robust distribution network and strategic partnerships, making it easy for customers to find their favorite Carlsberg brands, from the flagship Carlsberg Pilsner to local specialties.

In 2024, Carlsberg's commitment to accessibility was evident in its presence in over 140 markets globally. This broad market penetration is supported by strong relationships with distributors and retailers, allowing for efficient product placement and consumer access, a key factor in maintaining market share and driving sales volume.

Carlsberg's value proposition centers on delivering a diverse and high-quality beverage portfolio, catering to a wide range of consumer tastes and occasions. This includes globally recognized premium lagers, popular local brews, and a growing selection of alcohol-free options, ensuring broad market appeal. In 2023, the company saw significant growth in its alcohol-free segment, with sales up 15%, and premium beers also performed strongly with 10% growth.

The company leverages its strong brand heritage, dating back to 1847, to build deep consumer trust and loyalty, exemplified by brands like Carlsberg Pilsner and Tuborg. This long-standing reputation for brewing excellence and consistent quality sets it apart in the competitive beverage market. Carlsberg's global presence, reaching over 140 markets in 2024, is supported by a robust distribution network, ensuring accessibility for consumers worldwide.

Furthermore, Carlsberg's commitment to sustainability, particularly through its 'Together Towards ZERO and Beyond' program, enhances its brand image and attracts environmentally conscious consumers and partners. By 2022, Carlsberg achieved a 54% reduction in CO2 emissions from its breweries, demonstrating tangible progress in its environmental stewardship and alignment with global sustainability goals.

Innovation is another key pillar, with Carlsberg consistently launching new flavors and packaging to meet evolving consumer preferences and enhance the overall consumer experience. This includes exploring new formats and digital touchpoints to keep pace with market demands.

Carlsberg prioritizes responsive customer service through various channels, ensuring prompt handling of inquiries, feedback, and issue resolution for consumers and business partners alike. This commitment to efficient support directly contributes to fostering strong, lasting relationships and enhancing overall stakeholder value.

Carlsberg fosters deep customer connections through community building and personalized digital experiences. In 2024, their continued investment in social media engagement and targeted digital campaigns aimed to create a sense of belonging among consumers, reinforcing brand loyalty.

Their strategy extends to B2B partners, with dedicated key account management providing tailored support and merchandising advice, crucial for optimizing retail presence. This focus on partner success was reflected in 2024’s B2B segment growth, underscoring the effectiveness of these relationships.

Carlsberg also strengthens relationships with distributors through collaborative planning and incentive programs. In 2024, the company enhanced distributor training and digital tools to improve market responsiveness and sales execution.

Convenience stores and local shops are vital for Carlsberg, offering immediate access to their beverages for on-the-go consumers. These smaller outlets are crucial for broad market penetration, particularly in densely populated urban areas and local neighborhoods, acting as a complementary channel to larger supermarkets and hypermarkets.

In 2024, the convenience store sector continued to be a significant sales driver for alcoholic beverages. For instance, in the UK, convenience stores accounted for a substantial portion of off-trade beer sales, with reports indicating growth in this segment. This accessibility ensures Carlsberg's products are readily available for impulse buys and immediate consumption, boosting sales volume.

Carlsberg's e-commerce channels are increasingly important for direct consumer engagement and sales. This includes their own brand websites and partnerships with online retailers, aiming to capture a growing segment of digitally-native consumers and facilitate convenient purchasing. These digital avenues are crucial for data collection and personalized marketing efforts.

In 2023, Carlsberg saw a substantial uplift in online sales, reflecting a broader consumer shift towards digital purchasing. This trend is expected to continue in 2024, with e-commerce becoming a more significant contributor to overall revenue and brand interaction, especially for specialty products and direct-to-consumer offerings.

HoReCa businesses, including hotels, restaurants, and cafes, are key partners for Carlsberg, representing a significant channel for on-premise beverage consumption. These establishments rely on a consistent and reliable supply of Carlsberg's diverse product portfolio, often requiring tailored product ranges to suit their specific customer base and brand identity.

Carlsberg's engagement with the HoReCa sector is vital for building brand presence and driving sales, particularly in social environments where consumers experience beverages firsthand. In 2024, the European HoReCa sector continued its recovery, with many markets seeing pre-pandemic sales levels return, underscoring the importance of these partners for beverage companies.

Beyond product supply, Carlsberg often provides marketing support and collaborative initiatives to these businesses, aiming to enhance the overall customer experience and drive foot traffic. This partnership model is crucial for maintaining brand visibility and loyalty within the competitive on-trade market.

Carlsberg serves a broad spectrum of customers, from everyday beer drinkers to sophisticated craft enthusiasts and crucial business partners. This diverse customer base necessitates a multi-faceted approach to product development, marketing, and distribution, ensuring relevance and appeal across different segments.

The company's strategy acknowledges the varying needs and preferences within each segment, aiming to capture market share by offering value, quality, and unique experiences. In 2024, the global beverage market continued to show resilience, with beer remaining a dominant category, underscoring the importance of effectively engaging these distinct customer groups.

Distribution and logistics represent a significant portion of Carlsberg's expenses. These costs encompass warehousing, the transportation of goods via various shipping methods, fuel, and the upkeep of their delivery fleets. In 2024, Carlsberg, like many in the beverage industry, continued to focus on optimizing these operations to mitigate rising fuel prices and supply chain complexities.

Carlsberg's cost structure is a complex interplay of raw materials, production, marketing, and administrative expenses. Raw materials like malt and hops are significant variable costs, subject to market fluctuations; for example, global barley prices experienced volatility in 2024 due to weather impacts. Energy for brewing and packaging, labor, and distribution are also major cost drivers, with the company actively seeking efficiencies to counter rising energy and fuel prices in 2024.

Marketing and sales, including advertising and sponsorships, are crucial for brand strength, with increased commercial investments planned under their Accelerate SAIL strategy. Personnel and administrative costs, comprising salaries, benefits, and overheads, represent substantial fixed expenses. In 2023, Carlsberg reported €2,439 million in selling, general, and administrative expenses, underscoring the significant investment in operational capacity and strategic execution.

Research, Development, and Innovation (R&D&I) costs are vital for competitiveness, with DKK 1.2 billion spent in 2023 on new product development and process optimization, including sustainable packaging and brewing technologies. These investments are essential for maintaining market leadership and driving future growth through technological upgrades and efficiency improvements.

Carlsberg generates revenue not only from traditional alcoholic beverages but also from the sale of soft drinks and a growing portfolio of non-alcoholic beers. This diversification taps into a wider consumer demographic and addresses the increasing consumer preference for healthier and alcohol-free alternatives.

The company's strategic acquisition of Britvic in 2024 significantly bolstered its presence in the soft drinks market, adding a substantial revenue stream and expanding its reach in this category. This move positions Carlsberg to capitalize on the robust growth observed in the non-alcoholic beverage sector.

In 2024, the non-alcoholic beer segment showed particularly strong growth, with sales increasing by 15% year-over-year. This performance highlights the successful strategy of offering a diverse range of low- and no-alcohol options to meet evolving consumer demands.

Carlsberg's revenue is primarily driven by the sale of beer, encompassing its flagship brands and a diverse portfolio of local and international offerings. In 2024, the company highlighted that beer sales remained the core of its financial performance, contributing significantly to organic revenue growth across its operating regions.

Beyond beer, Carlsberg has expanded its revenue streams to include a growing range of ciders and ready-to-drink (RTD) beverages. This strategic move into the 'Beyond Beer' category has been successful, with Carlsberg reporting a 7.4% volume growth in Western Europe during the first half of 2024, partly attributed to these alternative alcoholic drinks.

The company also generates income from soft drinks and a robust selection of non-alcoholic beers, catering to health-conscious consumers and those seeking alcohol-free options. The acquisition of Britvic in 2024 significantly amplified this segment, adding a substantial revenue stream and strengthening Carlsberg's position in the non-alcoholic beverage market, which saw a 15% year-over-year sales increase in its non-alcoholic beer offerings in 2024.

Licensing agreements and royalty payments form another key revenue source, allowing Carlsberg to extend its brand reach globally by partnering with local producers. This strategy, exemplified by its bottling franchise with PepsiCo, reduces operational risk and investment while facilitating market penetration. While specific figures for licensing income are often integrated into broader financial reporting, this model remains vital for international expansion.