Carlsberg says looking beyond beer

Danish brewer Carlsberg said successful launches in Russia of Somersby cider and Eve, a fruit flavoured malt beverage aimed at women, meant it could look to products other than core brands for growth.

Chief executive Jorgen Buhl Rasmussen also said on Wednesday the world's fourth-biggest brewer was to target women in general and northern and western European markets in particular, as it looked to broaden its offering.

Carlsberg could also turn to bottled water and soft drinks if that paid off, he said at the company''s annual investor day.

"When we look at innovation in the future, we will see products that support beer," he said.

Head of global sales, marketing and innovation, Khalil Younes, said: "We have launched Somersby in 12 markets, including Russia, with great success".

Eve, flavoured with fruit juice, has also done well there, Younes said. "Year-to-date we have sold 60% more than our budget. So we have surprised ourselves."

Among other non-beer products, the group has launched Tuborg Lime Cut in Denmark and Norway.

Rasmussen said he expected east European markets to begin growing again soon after a hard 2009.

The group's Ukraine chief said in an interview that the local market -- Carlsberg's second biggest by volume -- had turned around after shrinking 7% in 2009.

Carlsberg stood by its mid-term target for operating margin in its Northern & Western Europe division to rise to 15-17 percent in 10 years, finance director Jorn Jensen said.

In 2009, the margin was 11.6%.

Carlsberg is developing its Northern & Western European markets into regions or sub-regions with higher profit potential, Jensen said. Carlsberg sees operating costs per hectolitre of beer dropping in the division this year, while the operating margin is seen up.

In material ahead of a presentation by West European markets chief Jesper Friis, Carlsberg said cost savings at its Obernai brewery in France were coming through faster than expected. Efficiency there had been significantly increased but there was still room for improvement, it said.

The one-day investor conference was focusing on Carlsberg's European businesses.