Online deliveries help Carlsberg China keep sales buoyant in world’s largest market

Digital channels will be a key strategy beyond pandemic, Carlsberg China president Lee Chee Kong says

China, which generated US$24 billion in beer sales in 2019, is the Danish multinational’s biggest market

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Carlsberg China hopes to differentiate itself by using climate-friendly production processes. Photo: Weibo

Published: 11:30am, 27 Jun 2021Updated: 11:30am, 29 Jun 2021

Collaboration with Chinese online delivery platforms has helped Carlsberg China reach more customers in the world’s biggest beer market, helping it buck the decline seen in the wider industry caused by consumers cutting down on eating and drinking out last year.

And while the worst of the impact of the Covid-19 pandemic has largely subsided, digitalisation will stick around as a key strategy at Carlsberg, said Lee Chee Kong, president of Carlsberg China.

“We see digitalisation as one of our strategic priorities. In the post Covid-19 era, we will increase our investment in diversifying our distribution channels, especially in e-commerce,” Lee said.

China has become the biggest market for Carlsberg, a Danish multinational company that is also the world’s third-largest brewer. The country consumed about 38 million kilolitres of beer in 2019 – the most globally – data from China Alcoholic Drinks Association shows, generating sales revenue of 158.1 billion yuan (US$24.4 billion). China also produced 37.7 million kilolitres that year, around a fifth of the world’s total production.

The US, with 23.9 million kilolitres, and Brazil, with 12.4 million kilolitres, were the second and third-biggest consumers of beer in 2019, respectively.

A Carlsberg factory in China. Photo: Weibo

Consumption per capita in 2019 stood at 27.1 litres, behind the more than 60 litres per capita in countries such as the US, Mexico and Brazil, data from research firm GlobalData shows.