Carlsberg in joint venture with Singapore-based beverage company

Carlsberg in joint venture with Singapore-based beverage company

COPENHAGEN (Reuters): Danish brewery group Carlsberg said on Friday it signed a joint venture agreement with Singapore-based Chang Beverage Company to form Carlsberg Asia Ltd, a 50-50 joint venture.

"The joint venture will administrate and develop the two companies' marketing and brewing activities in the Asia region," Carlsberg said.

Chang Brewery Company is an investor in breweries and distilleries in Asia and the Danish brewer is to funnel all its Asian activities into the new joint venture operation.

Carlsberg Asia is expected to have net turnover of approximately $770 million in its first year operation, with net profit seen at around $100 million in 2001, it said.

Through its own breweries and licensed operations, Carlsberg Asia plans to brew 17 million hectolitres of beer in its first year of operation, with Carlsberg beer accounting for two million liters of the total.

"Carlsberg has a long tradition of involvement in the region," Carlsberg group managing director Michael Iuul said.

"Historically there have been only a few Asian markets with significant beer consumption but today the situation is changing. Asia is the fastest growing beer market in the world".

Carlsberg Asia's two biggest markets are seen as Thailand and South Korea. Carlsberg beers are brewed by company breweries or licensees in 12 countries in Far-East Asia.

The new company is to be established on January 1, 2001 with head office in Singapore and nominal share capital of $400 million.

Carlsberg and Chang intend to float Carlsberg Asia within three to four years.

In connection with the formation of Carlsberg Asia, Carlsberg is to sell its 10 percent interest in Thai Breweries for $147 million.