Liang Ming Xuan, the investment advisor in the food, sees two main reasons for the significant losses of Carlsberg in the beer market during the three quarters of last year.
The expert believes that the first reason is the overall decline of the brewing industry, especially in the Russian market. The second reason is the low efficiency of company management and the lack of innovative products that could attract consumers.
According to Liang Ming Xuan the closure of the Carlsberg breweries and downsizing will help to reduce costs in the short term, but will not be able to solve more important problems.
Having arrived at the Chinese market, Carlsberg has developed a new product that corresponds to the tastes of the local population. Familiar to European consumers intense flavor of beer does not correspond to the preferences of the Chinese. This was a major mistake.
Furthermore, the brand positioning is a bit confusing and disconcerting. The company is presented on the market of high-quality beer and has completely denied the low-end products. A number of mergers and acquisitions (M&A) did not bring the desired result.
As a result, a lot of minor, at first sight, mistakes led to big problems for the company.