The firm’s most recent financial results revealed a portfolio-wide hit to its revenue, where mainstream Carlsberg beers saw a -4% decline in sales, premium products such as Kronenbourg 1664 and Somersby declined -7%, and alcohol-free Carlsberg 0.0 dropped -47%.
Despite this and continued subdued consumption across its key markets Malaysia and Singapore, Carlsberg Malaysia chairman Tan Sri Dato’ Chor Chee Heung has reiterated the company’s focus towards premiumisation as a key growth strategy moving forward.
“Amid a market that is undergoing profound changes in terms of dynamics and consumer preferences, premiumisation and innovation have emerged as our key priorities to ensure sustained return on investment,” he said.
“Premium brands such as Sapporo [are seeing] activations in priority outlets and formats; [and] innovation is supporting this agenda with expanded consumer choices for brands such as Connor’s and 1664 with new packaging innovations and pack formats.”
Recent premium innovations to have come from the brewery include Connor’s Stout Porter Xtra Maly in a larger 640ml bottle, Somersby’s expansion beyond the cider category into the shandy segment with Somersby Shandy, looking to draw in consumers seeking a lower-alcohol option, and the launch of the Garage alcopop premium RTD cocktail range.
“Sapporo has been our best-performing brand within the premiumisation category, and we have directed investments towards priority outlets including expanded pack options, to reinforce Sapporo’s role as a recognised Japanese lager brand associated with brewing excellence,” Carlsberg Malaysia managing director Stefano Clini added.
“Premiumisation has been [and will be] a key growth lever for us, complemented by innovation to extend brands into formats and experiences supporting differentiation.”
Proceeding with caution
Both leaders have however stressed that the trade environment in the region moving forward is expected to continue to be uncertain, due to impacts by both uncertainty in trade policies as well as spending power.
“The operating environment going forward will continue to be challenging with ongoing trade policy uncertainty, as well as rising cost pressures on consumer sentiment,” Chor said.
“During the year, we also had an increase in excise duties on alcohol in Malaysia following the tabling of Budget 2026. This move will add to an already elevated tax environment for the beer industry, with potential implications for affordability, demand patterns and the increased prevalence of illicit alcohol.”
Clini added that there are many factors in the air currently that are adding to this already-uncertain situation.
“Looking ahead, we are cautious about the operating environment amid ongoing macroeconomic uncertainties, external pressures and subdued consumer sentiment across both Malaysia and Singapore. Our planning assumptions reflect persistent market volatility and heightened consumer sensitivity to value [rather than] a rapid normalisation of demand conditions” he said.
“In Malaysia, consumption patterns are expected to stay measured, shaped by affordability concerns following the excise duty increase implemented in November 2025, alongside broader household cost pressures. We are mindful of the cumulative impact of these developments.”
As such, cost optimisation, prudent resource allocation and disciplined management will be crucial guiding factors for the firm’s spending in 2026.
“We also expect the Visit Malaysia 2026 campaign to support tourism activity and stimulate domestic spending, which could provide incremental support to on-trade performance and overall category demand,” Clini said.
Chor provided an optimistic view for Singapore sales as well, based on economic indicators.
“In Singapore, a GDP growth of 2.0% to 4.0% is expected for 2026 amid an improved outlook for key economic sectors. In addition, Singapore is expected to transition from a period of managing inflation and external headwinds to one of firmer, more sustainable growth with moderating price pressures,” he said.
“The government will continue to support household purchasing power and has notably announced that there will be no excise duty increase on alcohol in 2026 [so] this is a positive sign.”
