Danish beer with a conscience
Great potentials in the Chinese market made the Danish brewery Carlsberg join EXPO 2010 in Shanghai. Furthermore, had it not been for the son of the founder of Carlsberg, the famous statue of the Little Mermaid would never have visited Shanghai next year.
Their golden drops are already everywhere in China. All the way from the remote province of Xinjiang in the west to booming Shanghai in the east, the Chinese are able to quench their thirst with beers from Carlsberg. Therefore, participating in next year’s most important international event in China, EXPO 2010 in Shanghai, is only a natural step for the world-renowned Danish brewery, says Knud Hedeager Nielsen, Public Affairs manager of Carlsberg.
- We have been in China for quite a long time. Our presence dates back to the founder of Carlsberg, J.C. Jacobsen, who started exports to Asia back in the late 19th century. However, until the last 10-15 years, we did not have any breweries as such in China but now Carlsberg is investing heavily in China. Today, we have 20 breweries in China, we are well established and the Carlsberg brand is a well-known beer on the Chinese market. Actually, we are the market leader in western China today.
What do you gain from participation in EXPO 2010 in Shanghai?
- Obviously many visitors will attend EXPO 2010. It is a huge event with a very high profile in China. To us, participation means creating an image around Denmark with the Danish pavilion, but it is certainly also a way to disseminate better knowledge of Carlsberg. So, generating higher visibility on the Chinese market and linking up with the great story of the Danish pavilion are some of the benefits that we get out of participating.
The official theme of the EXPO is ‘Better City, Better Life’. What is Carlsberg's connection with this main theme?
- When it comes to ‘Better Life’, Carlsberg is often situated close to the city centre in the markets in which we operate. This is especially the case in Copenhagen where we recently closed down our city brewery, which is now going to be developed into a housing and business area. That fits very well with the theme of the Danish pavilion to create sustainable city development. This is exactly what the old brewery site in Denmark is going through - the development from industrial site to sustainable city and living area.
Have you taken any initiatives in China to support the sustainable theme of the EXPO?
- In terms of CSR (Corporate Social Responsibility), when you run a brewery, you get effluent, so you need a wastewater treatment plant, which is why we have invested heavily in the purification of water coming out of our breweries; however, there is also a social side, that is, the way we manage our staff, which is part of the whole Carlsberg CSR complex. The brewing sector is traditionally a sector that takes very good care of its people and employees. The salaries for people employed in the brewing sector are normally above average in the local markets.
What are your expectations for the Chinese market within the next few years?
- The current crisis is deeply felt here, and this gives us a hint as to why China is so important and interesting. While most markets globally are hit severely and have negative growth, we see the Chinese market still moving forward, if not with double-digit growth then still with considerable growth around 6.7or 8 per cent this year, so obviously there is great potential in the Chinese market. Today we see an average consumption of beer in China around 25 litres per capita. If you measure that against the 80 litres on a mature market in western Europe, you need not be an expert to figure out that there is a huge potential to be developed in China. We had not anticipated our activities in China to generate a large profit for a number of years, yet already now we experience a high return on our investment. Reality has caught up with our expectations in a most positive way.
How do you think the Danish EXPO pavilion and exhibition is going to be received in China?
- In terms of the architecture, I think it is a remarkable building and the fact that it has been decided to move the Little Mermaid to the Danish pavilion is a fantastic feat that will obviously attract considerable attention. I have no doubt that she will be a huge attraction at the Danish pavilion in Shanghai.
There is a special connection between the Little Mermaid and Carlsberg. Would you like to explain?
- That is a fascinating story. Had it not been for Carl Jacobsen, the son of the founder of Carlsberg, the Little Mermaid would not have existed today. In fact, he commissioned the creation of the Little Mermaid and donated her to the city of Copenhagen, so you can actually say that the connection between Carlsberg and the Little Mermaid is very close.
