Carlsberg sells stake in Malawi business

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Carlsberg Malawi Limited has sold 59% of its stakes to Castel Group at an undisclosed fee in a ‘bid executes its strategy to slim down the company and focus on core businesses’, Danish brewer Carlsberg A/S (CARL-A.KO) has confirmed.

Carlsberg has signed a license agreement allowing Carlsberg beer to continue to be produced and sold in Malawi, it said.

“In line with Carlsberg Group’s new strategy, we have evaluated all businesses in order to focus our efforts against a narrower and more precisely-defined set of priorities,” said Graham Fewkes, executive vice president of Asia.

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Carlsberg beers

Earlier this year, the brewer laid out a new strategic plan that it hopes will position it for growth and reverse a lacklustre earnings trend amid pressure from declining eastern European markets and a weak ruble, in particular.

According to the Market Watch website, the initiatives adopted include an overhaul of its Russian business, a focus on premium brands in big cities and an expansion of both non-alcoholic drinks and craft beers. The company has merged all its existing profit improvement initiatives into a new single program, which it hopes would generate total net benefits of 1.5 billion to 2 billion Danish kroner ($225 million-$300 million) by 2018.

Wednesday’s sale of its 59% Malawi stake is pending regulatory and corporate approval, it said.

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8 Comments

  1. Carsberg cannot operate in a Govt run by Thieves.a Govt which is stealing from companies through high Taxation.Carslberg cannot work in aGovt whose president is clueless.These are signs of a failed state with a failed president. Sad

  2. Soon we will talk of redundancy, workers will be booted off. From 2014 to 2016 already companies suffocate, a lot of job losses, deaths, economy slow down, death of iconic universities, loss of reputation, among others. This is what a new Malawi is looking like. No we need to sit down as a country and flip our record book from 1964 to 2016 and workout where we had gone wrong by asking ourselves questions.
    Where did we miss an opportunity?
    Is it a poor selection of our leaders?
    Or may be we as Malawian are resilient in a “stupid” manner?

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