Solid growth for Carlsberg's beer brands in Azerbaijan in 2023

In 2023, Carlsberg Azerbaijan demonstrated significant achievements, contributing positively to both its financial performance and sustainable development initiatives.

Company results

Carlsberg Azerbaijan LLC delivered a 1% increase in sales volumes in 2023 compared to 2022, driven primarily by inbound tourism and the resurgence of the on-trade channel. This growth was accompanied by a noteworthy 15% rise in tax payments, totaling 38.1 million manat.

Continuing the world trend on growth of Modern trade channel (large chain stores), Carlsberg Azerbaijan’s sales in Modern trade increased by 12%. HoReCa (Hotel, Café, Restaurant) channel showed an increase of 3%, while the traditional trade channel (small stores) saw a slight decline of 3.4%, attributed to consumers shifting to modern trade outlets.

In 2023, the company extended its export portfolio to Georgia, reaching +22% volume growth compared to 2022.

“Despite the complex regional situation, high inflation on global level and many other challenges, we managed to make 2023 another year of success for Carlsberg Azerbaijan. Giving back to society is part of the Carlsberg DNA, so here in Azerbaijan we are trying to develop beer industry, invest in quality, equipment and beer category, as well as bring international expertise to raw&pack materials industry and drive sustainability agenda. In 2021, we signed MoU with Ministry of Economy, aiming to invest 25 mln manat to Brewery, Industry & People, and I am glad to inform that we have already invested 18 mln manat and investment plan for 2024 is around 6.7 mln manat, which shows commitment of Carlsberg Group to develop and expand business in Azerbaijan”, said Alius Antulis, the Managing Director of Carlsberg Azerbaijan LLC.

Brand Growth and Initiatives

The key brands of Carlsberg Azerbaijan experienced notable growth throughout 2023, showcasing the success of strategic initiatives and partnerships.

The flagship brand Xirdalan achieved a growth of 4%, boosted by a targeted campaign around the Novruz holiday, ran a successful regional campaign titled "Xirdalan - hər dalan doğmadır" during the peak season and collaborated with YayLand Fest, organized by the Nargis Fund.

Smart portfolio offerings, coupled with robust digital and in-store support, drove  an exceptional growth rate of 53.8% in Premium Portfolio:

Carlsberg notched up growth of 32%,  attributed to the introduction of new limited-edition can packaging dedicated to the 30 years of partnership with Liverpool FC and enhanced distribution strategies.

Kronenbourg 1664 Blanc exhibited an impressive growth rate of 122% mainly attributed to the launch of new SKUs and dedicated on-trade support.

Tuborg demonstrated positive dynamics with a growth rate of up to 65% with the release of the sub-brand Tuborg Gold in both bottle and can contributed significantly to this result, as well as actively supported vibrant music events such as "Summer Live 23", "SOLONG," and "MAKULATURA," throughout 2023.

Localization of raw materials

The raw material localization project started in 2019 in cooperation with partner “AzerSheker” LLC resulted in full switch to local barley from 2021. In 2023, Carlsberg Azerbaijan, AzerSheker LLC, AzerSun Agricultural Products LLC and Azerbaijan Investment Company laid a foundation of the first in South Caucasus Malthouse. The new plant will be commissioned in the 4th quarter of 2024.

Sustainable development

In 2023 Carlsberg Azerbaijan continued to improve its sustainability performance primarily via reduction of resource consumption and emissions: decrease in water consumption by 1.8%, electric energy by 7% and CO2 emissions by 9% compared to 2022. 

In accordance with Carlsberg Group’s long-term sustainable development program Together Towards ZERO and Beyond (TTZAB) ambitions, the company continued its local partnership on International Coastal Cleanup Day aimed to clean the Caspian seashore together with the Ministry of Ecology and Natural Resources, ASAN volunteer organization and business community.

In January 2024, during the Davos World Economic Forum, Jacob Aarup-Andersen, the CEO of Carlsberg Group, met with Mikail Jabbarov, the Minister of Economy of the Republic of Azerbaijan. The meeting centered on the strategic localization of raw materials and packaging, investments, and highlighted the significance of the Azerbaijani market for the Carlsberg Group. This meeting was built upon last year's notable meeting between His Excellency Ilham Aliyev, President of the Republic of Azerbaijan and Cees ‘t Hart, the former CEO of Carlsberg Group.