Carlsberg Looks to Asia to Expand Beer Profits

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Nov. 11 (Bloomberg) -- Bloomberg News’ Matt Campbell reports that Carlsberg is looking to expand its reach in Asia with a potential bid for Tsingtao and other brands. He speaks on Bloomberg Television’s “The Pulse.”

Beer brands better than i can.

They have had too much exposure in the wrong regions and they will pay for it.

A beer consumption in western europe is declining and in eastern europe, growing a little bit.

In asia, people drink more beer.

That is good news if you have enough exposure to asia.

Carlsberg is one of the big brewers that probably does not.

Nothing that really moves the needle.

It is smaller than a likes of ab inbev and sab miller.

It needed a presence in china to make a difference in its bottom line.

What are the other stories in asia?

There is tsingtao, a very big chinese ran.

-- brand.

There is also a brewery partly owned by the chinese government.

If you want to think beyond china, there is san miguel brewing in the philippines.

This enormous philippine conglomerate.

They sell something like nine out of every 10 beers sold in the philippines, a country north of 100 million people.

You can see how there would be a case for this.

The issue is price with san miguel and the others.

The sellers know they have something valuable to asia.

It is where brewers want to be and they are not going to give up easily.

This is one of the broader consolidation stories.

Are we seeing any other brands looking to execute deals in asia?

You have got to have volume.

It is a volume business.

You have got that have money in the right place.

Beer is a consolidated industry.

Abn do -- ab inbev, an enormous conglomerate.

Sab miller, slightly less enormous.

When does the final stage of beer conglomerations happen?

The deal we have talked about is a murder that would create an enormous brewing company.

The other question, what do carlsberg and heineken do?

They are big, but they are not huge.

Do they merge?

They have some historical connections that might prevent that.

Today expand laterally into wine and spirits?

This is not necessarily such a sustainable industry in its current state.

Consumption in places like western europe and north america is generally declining.

That means there is less to go around for these very large companies.

Thank you very much indeed.

Matt campbell with the latest

This text has been automatically generated. It may not be 100% accurate.

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