Carlsberg raises glass to teetotal beer drinkers

Teetotal Brits have helped Special Brew and Tuborg maker Carlsberg lift revenues, the Danish brewer said on Wednesday.

The lager giant, led by Cees ‘t Hart, said sales of alcohol-free beer in western Europe surged 13% in the six months to June 30.

Carlsberg 0.0% and San Miguel 0.0% were popular products sold in the UK, it added. Healthy millennials helped spearhead the increase in popularity.

However, despite strong demand for craft beer and growth of Tuborg volumes in Asia, the firm was hit by weaker beer sales in eastern Europe and smaller pack sizes in Russia.

Group sales rose 2% on a basis that excludes currency and acquisition effects. Analysts pencilled in 3.2%.

Investec analyst Eddy Hargreaves said Carlsberg is making good progress in cutting costs, but warned: “The geographic exposure to currently challenged beer markets (Russia, India, China) makes us cautious about the near-term direction of forecasts. Today’s results confirm the challenges that Carlsberg faces are ongoing.”

Annual profit forecasts were unchanged, despite half-year operating profits jumping 23% to 2.3 billion kroner. The shares dropped 2.5% in Copenhagen.