ASI – Carlsberg Group has entered into a new partnership with PepsiCo, becoming the official PepsiCo bottler in Kazakhstan and Kyrgyzstan from 1 January 2026.
As part of the agreement, Carlsberg will take over PepsiCo’s franchise in the two Central Asian countries to produce, sell, and distribute non-alcoholic beverages.
The Danish brewing giant will invest over €100 million (US$110.16M) in constructing a new production facility for soft drinks in Kazakhstan, significantly expanding its existing business in the region.
The new facility is expected to double Carlsberg’s non-alcoholic beverage output in the region and generate a double-digit return on invested capital (ROIC) in the first year.
By the third year, the investment is projected to contribute positively to the Group’s overall ROIC.
Currently, Carlsberg Kazakhstan leads the beer market with a 38 percent market share as of 2023, and this new agreement is expected to further solidify its market position.
Jacob Aarup-Andersen, CEO of Carlsberg Group, highlighted the significance of the deal, stating, “This new agreement adds significant volume to our business in Kazakhstan, strengthening our presence in the market and further building our business in Kyrgyzstan.
We are happy to see our longstanding partnership with PepsiCo expand into these two markets, underlining the long-term potential in the collaboration between PepsiCo and the Carlsberg Group.”
Carlsberg and PepsiCo have an established partnership, with bottling agreements in five other markets across Europe and Asia, including Norway, Sweden, Switzerland, Cambodia, and Laos.
This new agreement expands their collaboration, emphasizing the strategic importance of Central Asian markets.
CMA to probe Britvic acquisition
At the same time, Carlsberg’s acquisition activities are under scrutiny from the UK’s Competition and Markets Authority (CMA)
The CMA is currently seeking public input on the potential impact of Carlsberg’s proposed acquisition of Britvic, a major UK soft drinks producer.
The CMA will evaluate whether the merger could reduce competition in the UK’s soft drink sector.
The inquiry into the Britvic acquisition will follow the CMA’s assessment of comments from interested parties, which are being accepted until 24 September 2024.
The acquisition bid, worth £3.3 billion (US$4.2 billion), was accepted by Britvic in July after two earlier bids from Carlsberg were rejected.
Simultaneously, Carlsberg agreed to acquire Marston’s 40 percent stake in their brewing joint venture, Carlsberg Marston’s Brewing Company (CMBC), further consolidating its brewing operations in the UK.
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