Carlsberg has delivered on the speculation last year linking the group with Sapporo Breweries in Asia, with the pair agreeing a joint venture comprising Carlsberg’s existing assets across six markets in the region.
In November, the Copenhagen-headquartered group declined to comment on reports that discussions had commenced with Sapporo regarding a possible divestment of some of its assets in Asia. Rather than a sale, however, the pair have agreed to a 75-25 JV – with Carlsberg holding both the majority and “full operational control” – covering Cambodia, Hong Kong, Laos, Malaysia, Singapore and Vietnam.
The arrangement builds on the deal sealed in 2024 for Carlsberg to sell Sapporo’s namesake Premium Beer in Hong Kong, Malaysia and Singapore.
As well as exclusive production and distribution rights for Sapporo Premium Beer in the six countries, the deal also includes “long-term agreements” for Carlsberg to produce and distribute the brand in the UK and Myanmar.
The 25% interest in the JV will cost Sapporo US$643m, with completion of the agreement subject to “required regulatory approvals and customary closing conditions”. The entity’s financial performance will be included in Carlsberg’s quarterly results.
“The partnership strengthens our premium portfolio with a highly complementary brand and secures long-term access to a brand we believe in,” said Carlsberg’s executive VP for Asia, João Abecasis. “It also extends our ability to grow Sapporo across a broader geographic footprint, building on the momentum already established in the region.
“At the same time, the transaction enhances Carlsberg’s financial flexibility while preserving what matters most: operational control, local leadership and the agility to continue serving our customers and consumers with the same focus and commitment as today.”
Not included in the new JV are Carlsberg’s assets in China, India or Nepal. Last week, the group confirmed its intention to proceed with an IPO for its division in India.
