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Key Concepts:

• Brand Portfolio: A collection of brands owned by a single company.
• Premium Brands: Brands positioned as higher quality and often higher priced.
• Mainstream Brands: Brands targeting a broader consumer base with more accessible pricing.
• Category Diversification: Expanding into different product categories beyond the core business.
• Adjacent Brands: Brands in categories related to the core business, such as non-alcoholic beverages.

Brand Categorization and Portfolio Strategy

Carlsberg Group owns 140 brands globally, with Carlsberg being just one of them. The company categorizes its brands into different tiers, including premium and mainstream. Examples of premium brands include Carlsberg 1664 Blanc and Tuborg. Huda is identified as a mainstream brand.

Strategic Importance of Brand Categorization

Categorizing brands serves two strategic purposes:

1. Exposure to Higher-Growing Categories: Premium brands often experience faster growth rates compared to mainstream brands. By having a portfolio that includes premium brands, the company can capitalize on these growth opportunities.
2. Diversification Around the Core: Diversifying into different categories, such as alcohol-free beverages, soft drinks, energy drinks, and "Beyond beer" products, reduces reliance on the core mainstream beer business.

Role of Mainstream Beer and Adjacent Brands

The company believes that mainstream beer will continue to play a significant role in the market for many decades. However, the mainstream beer portfolio is strengthened by the presence of adjacent brands. These adjacent brands provide diversification and access to new consumer segments.

Category Focus

The company's category focus involves expanding its portfolio to include a variety of adjacent brands, such as premium alcoholic beverages, alcohol-free beverages, soft drinks, energy drinks, and "Beyond beer" products. This strategy aims to create a more resilient and diversified business.

Conclusion

Carlsberg Group's brand portfolio strategy involves categorizing brands into premium and mainstream tiers and diversifying into adjacent categories. This approach allows the company to capitalize on growth opportunities in higher-growing categories and reduce reliance on the core mainstream beer business. The company believes that a strong mainstream beer portfolio, surrounded by adjacent brands, is essential for long-term success.