This interview was published for Global Drinks Intel subscribers in October. For details on how to join them, click here.
Earlier today, Carlsberg reported a near-6% increase in sales from the three months to the end of September, contributing to a +9.2% top-line performance in the year-to-date. Following the announcement, Global Drinks Intel secured five minutes with new CEO Jacob Aarup-Andersen.
Global Drinks Intel: What’s Carlsberg looking for in appointing a former banker as its next CEO?
Jacob Aarup-Andersen: I didn’t come straight from banking, I was the CEO of a services company [ISS] for three years. But yes, I did start my career in banking. I also spent ten years of my career in the UK, where I consumed a decent amount of different Carlsberg products.
I’m really excited to have joined the company. One of the things that attracted me is the strong heritage and legacy of our founders. This company is so much more than just a corporation. Here in Denmark, Carlsberg is a societal pillar through its foundation. That’s an extra level of motivation.
I’ve spent my first few months on the road, meeting as many colleagues as possible, visiting breweries and experiencing on- and off-trade environments with consumers and customers all over the world. This has reinforced my perspective that this is a fantastic business with great brands, coupled with a very strong commercial mindset and the ability to deliver. The company’s foundations are strong.
I’ll admit I’m starting at an interesting time when business is a bit more sluggish, but that’s also a good time to start: We’re building for the long term, not the short term.
GDI: What have you set as your definition of success for your time as CEO?
JAA: From my perspective, it’s about driving profitable growth. I hope I’ll make Carlsberg significantly bigger and more profitable – it’s as simple as that. I’ve pledged to hand the company over in a better shape than when I took it over – and it was already in good shape.
I think Carlsberg would benefit from more scale within our existing territories. We’ve got a very exciting portfolio of brands and strong geographic positions where we can find that growth. One difference I hope you’ve already seen over the last couple of months is that I talk significantly more about investing in our brands and our commercial abilities because I think our legacy will be one of growth.
But, let’s see. One thing that [predecessor] Cees t’Hart’s reign showed is you never know what’s going to happen over your years as a CEO.
GDI: You’re very active on LinkedIn, unlike many others in similar positions of seniority in the beverage alcohol industry.
JAA: With all due respect, I think that’s a generational thing – I’m 45.
There’s a need for this industry to reconnect more broadly with society. I think we need to demystify what’s going on in our corporations. As an industry that produces an intoxicating substance, we need to have more significant ownership of the agenda. Part of that is to be more transparent about all the great work we’re doing to make this industry better.
We shouldn’t repeat the mistakes of other industries in the past, who have played defence on the hard topics. We should be playing offence. As an example, you’ll also see me promote alcohol-free on social media.
This hasn’t been a random decision by me to do this. It’s very much to create a better understanding. I’m doing it not just on behalf of Carlsberg, I’m doing it on behalf of the entire industry.
GDI: What’s surprised and what’s disappointed you on your travels so far?
JAA: I was blown away by what I saw in Vietnam. I know the market is tough at the moment, but the way we’re executing our growth in southern Vietnam was fantastic to see – The way we’re constantly changing our tactics and approach area by area based on data and analytics was fantastic to see.
On the negative side, the consumer environment right now is tougher than I thought it would be just six months ago. Along with our peers, we all started the year with lower volumes than we’d hoped. That’s given us all a bit of an uphill battle. On the other hand, that’s the reality for all of us.
GDI: You sound like you’re enjoying yourself so far.
JAA: Oh, I am, thank you!
This interview was published for Global Drinks Intel subscribers in October. For details on how to join them, click here.
