Following the announced acquisition of British soft drinks company Britvic earlier this year, Carlsberg once again demonstrates a strategic shift away from its traditional focus on beer. Today, Carlsberg revealed plans to invest over EUR 100 million in the construction of a new production facility for soft drinks in Kazakhstan. As part of an expanded partnership with PepsiCo, Carlsberg will begin bottling PepsiCo’s non-alcoholic beverages in Kazakhstan and Kyrgyzstan, starting on January 1, 2026.
Carlsberg and PepsiCo currently collaborate through bottling agreements in five other markets across Europe and Asia, including Norway, Sweden, Switzerland, Cambodia, and Laos. Earlier this year, Carlsberg revealed its plan to acquire Britvic plc (inside.beer, 27.8.2024). Upon successful completion, pending regulatory and legal approvals, this acquisition would enable Carlsberg to produce and distribute PepsiCo's soft drinks also in the UK and Ireland.
Carlsberg Kazakhstan, already holding the number one position in the beer category with a 38% market share in 2023, is further strengthening its presence in the region. PepsiCo’s previous distribution partner in both Kazakhstan and Kyrgyzstan was RG Brands, a Kazakhstan-based beverage manufacturer listed on the Kazakhstan Stock Exchange and headquartered in Almaty.
The new facility is expected to significantly boost Carlsberg’s business in the region, delivering a double-digit return on invested capital from the first year and being accretive to the Group’s ROIC by year three.
“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 further into these two markets, underlining the long-term potential in the collaboration between PepsiCo and the Carlsberg Group,” says Jacob Aarup-Andersen, CEO, Carlsberg Group.
“We are very happy to further expand our strong collaboration with the Carlsberg Group by adding these two important markets, which, building on Carlsberg’s in-market strength, will elevate our sales and distribution capabilities for our brands in Kazakhstan and Kyrgyzstan,” says Silviu Popovici, CEO, PepsiCo Europe.
