Danish Brewer Unibrew Tumbles Further as Pepsi Loss Clouds Earnings for Years

The loss of a key bottling agreement with PepsiCo Inc is set to reshape the investment case for Royal Unibrew A/S, a blow analysts say will weigh on the Danish brewer’s earnings for years.

Shares in Royal Unibrew have slumped about 28% since Tuesday’s announcement that it will relinquish the licensing rights in Denmark, Finland and the Baltics from 2029, a business accounting for roughly 13% of group sales. Rival Carlsberg A/S will take over the contract, which in turn will also end its bottling agreements with Coca-Cola Co. in Denmark and Finland by the end of 2028.