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## Carlsberg Asia Holding Ltd 

Most of Carlsberg BreweriesGLYPH<213> activities in Asia have been transferred to the joint-venture Carls- berg Asia Holding Ltd. (CAL), of which 50% is held by Carlsberg Breweries and 50% is held by the Asian Chang Beverage Company. CAL was officially established in the autumn of 2001 and is expected to be fully operational from the beginning of 2002. CAL will then hold ownership interests in operations in China, Hong Kong, Malaysia, Nepal, Singapore, South Korea, Sri Lanka, Thailand, and Vietnam. These operations all manage portfolios of strong local brands and Carlsberg as the inter- national premium brand. Further, CAL has long- standing licence arrangements with local partners in e.g. Indonesia and Japan. 

## South Korea 

After some years with double-digit growth, the Korean beer market increased only slightly in 2001 and per capita beer consumption totalled approx. 37 litres. However, demand for premium beer has picked up in line with the penetration of various different kinds of imported beer in the market due to changes in import regulations. CarlsbergGLYPH<213>s part- ner in Korea, Hite Brewery Co. Ltd., has been market leader since 1996 and reached an all-time high market share of 55% in 2001. In addition, the shareholding in Hite was increased by 8.4% in Ja- nuary 2002. 

## China 

Chinese beer consumption continues to rise, and in 2001 China overtook the US as the worldGLYPH<213>s lar- gest beer market. The rise is mainly driven by local brands, however, and sales of foreign premium beer are stagnant. In addition, intensified price competition makes the premium segment very dif- ficult. On that basis it is very positive that sales of the Carlsberg brand increased in China in 2001, particularly in the important South China market. 

In southern China, sales of CALGLYPH<213>s local brand, Dragon 8, were adversely affected by the tough competition which reduced earnings and sales vo- lume. However, the brand has maintained its strong position in its core market around the Hin- son brewery. 

## Hong Kong 

The economic growth in Hong Kong has been particularly weak during the last half of 2001. This has impacted overall beer consumption, and the premium segment has come under increased pri- ce pressure from low-price import brands. 

Overall sales of the Carlsberg brand have de- creased compared to previous years, although Carlsberg has maintained its market share in the premium segment. In addition to the Carlsberg brand, Carlsberg Hong Kong Ltd. produces a number of complementary brands, including its standard priced product SKOL and TetleyGLYPH<213>s Bitter imported from the UK. Both brands showed satis- factory sales performance, and so did the Shandy product Jolly Shandy. Furthermore, the company has taken on the distributorship in Hong Kong for Guinness, which complements the Carlsberg port- folio. 

## Japan 

Total beer sales remained stagnant and per capita consumption totalled about 55 litres with a remar- kable shift from ordinary beer to the special, light beer type GLYPH<210>HappoushuGLYPH<211>. In 2001, HappoushuGLYPH<213>s market share reached 32% and the beer type is very price competitive because of lower excise duties. As the leading international draught beer brand, Carlsberg continued to enhance its strong 

## Group Companies Asia 

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