Carlsberg Malaysia is holding firm on premiumisation as its core growth strategy even as recent financial results show a portfolio-wide revenue hit across mainstream and premium segments alike.
Mainstream Carlsberg beers declined 4% in sales, while premium products including Kronenbourg 1664 and Somersby fell 7%. The alcohol-free Carlsberg 0.0 saw a steeper drop of 47%. Despite these declines and subdued consumption in Malaysia and Singapore, the company's chairman and managing director emphasized that premiumisation and innovation remain priorities for sustained returns.
Sapporo has emerged as the best-performing brand in the premium category, receiving expanded distribution in priority outlets and new pack options. The company has also launched several innovations tied to premiumisation: Connor's Stout Porter Xtra Maly in a larger 640ml bottle, Somersby Shandy targeting lower-alcohol consumers, and the Garage alcopop premium RTD cocktail range. These moves aim to reinforce brand differentiation and extend into new formats.
The operating environment, however, remains challenging. Malaysia raised excise duties on alcohol following Budget 2026, adding to cost pressures and affordability concerns for consumers. Carlsberg expects consumption patterns to stay measured in Malaysia, shaped by these duty increases and broader household cost pressures. In Singapore, the outlook is more optimistic. The city-state expects GDP growth of 2.0% to 4.0% in 2026 and has announced no excise duty increase on alcohol, signaling improved conditions for on-trade performance. The company is also banking on Malaysia's Visit Malaysia 2026 campaign to support tourism-driven domestic spending.