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Carlsberg looks to tap into rising popularity of Beerlao
With growing demand for Beerlao and confidence in the Lao economy, the Carlsberg Group President and Chief Executive Officer has expressed interest in increasing the group's investment in the Lao Brewery Company (LBC).
Mr. Jorgen Bulh Rasmussen yesterday led a delegation to meet with Lao Prime Minister Mr Thongsing Thammavong at the Prime Minister's Office in Vientiane.
“We would like to invest a further US$25 million in the company to expand the business and meet increasing demand for Beerlao.”
“Our interest stems from strong confidence in the future of the Lao Brewery Company, as well as political stability and continued economic growth in Laos,” said Mr Rasmussen.
Mr. Thongsing praised the Carlsberg Group for its strong contribution to LBC as well as the development of Laos because LBC has strengthened the Lao economy and supported various charitable causes.
“ Laos has political stability and a policy to maintain national economic growth. I'm sure that we will continue to have strong future cooperation.”
Mr. Rasmussen told media that the purpose of the investment is to increase the production capacity of LBC.
“Now, we have very little capacity space and, while we have enough capacity to meet demand this year, the market demand for LBC products is growing every year so it's necessary to increase production capacity.”
Mr. Rasmussen said that in order to ensure the company can continue to meet growing demand, an investment of around US$60 million is needed over the next five years. The Carlsberg Group is keen to invest US$25 million during the 2011-12 period.
“With the new investment, production will increase by about 50 percent,” said Mr. Rasmussen.
“When I talk about increasing investment, I talk about company investment not just Carlsberg.”
“For example, Carlsberg might invest half and the Lao government might invest half, so it will not affect the shareholdings,” he added.
“Increasing production will allow us to bring products to more Lao people, even in rural areas.”
“At the same time, we also plan to export to more countries and find more markets for LBC products as Beerlao has a strong brand reputation overseas, especially in Europe.”
When asked about the possibility of listing LBC on the Lao Securities Exchange, Mr. Rasmussen said that it is an option under consideration.
“If it benefits the company and shareholders, why shouldn't we list?”
“However, we have to discuss the idea with local management and also shareholders.”
Mr. Rasmussen said in coming years Carlsberg will focus more on expanding its business in Asia, including China and India.
The Danish brewing company owns 50 percent of LBC and is also the main holder in the Lao Soft Drink Company, owning 70 percent of shares.
vientiane times
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