PETALING JAYA: Carlsberg Brewery Malaysia Bhd
said it will continue business as usual despite its parent, Carlsberg A/S (Carlsberg Group), entering into a strategic joint venture with Japan's Sapporo Breweries Ltd covering Malaysia and other Southeast Asian markets.
In a filing with Bursa Malaysia, Carlsberg Malaysia outlined the effects of the partnership, saying it extends the brewer's exclusive rights to produce and distribute Sapporo Premium Beer in Malaysia on a perpetual basis.
"There will be no changes to day-to-day business operations, customer relationships or existing commercial arrangements as a result of Carlsberg Group's announcement today," it noted.
Under the agreement, Carlsberg Group, which owns a 51% stake in Carlsberg Malaysia, will establish a regional joint venture with Sapporo.
Carlsberg Group will retain a 75% stake and full operational control while receiving US$643mil in cash from Sapporo for a 25% interest in the venture.
The partnership builds on Carlsberg Group and Sapporo's collaboration on the sale of Sapporo Premium Beer in Malaysia, Singapore and Hong Kong since 2024, extending it to Vietnam, Laos and Cambodia.
Upon completion of the transaction, Sapporo will grant the joint venture perpetual exclusive rights to produce, market, distribute and sell Sapporo Premium Beer across these markets.
In a statement, Carlsberg Group said the US$643mil consideration represents a 2025 earnings before interest and tax (EBIT) multiple of 21.3 times.
It intends to use the proceeds to repay debt and for general corporate purposes, while continuing to consolidate the joint venture's financial results.
Separately, Carlsberg Group and Sapporo also entered into a strategic partnership in the UK.
Under the arrangement, Sapporo will grant Carlsberg long-term licences to produce and distribute Sapporo Premium Beer in the UK and Myanmar, while both parties will explore opportunities to introduce the brand into other European and Asian markets.
Carlsberg Group chief executive officer Jacob Aarup-Andersen said the partnership would strengthen the brewer's premium beer portfolio and accelerate its growth ambitions in South-East Asia and Hong Kong.
"The new joint venture and long-term strategic partnership add Sapporo's premium Japanese brand to Carlsberg's strong portfolio of local and international brands and route-to-market capabilities in Southeast Asia and Hong Kong, enabling us to accelerate our growth ambitions in these important markets,” he noted.
"We look forward to working with our new partner as we expand our combined business together across the joint venture markets and beyond, and begin an exciting cooperation in the UK.”
According to Reuters, the JV is expected to be based in Singapore and established by December 2026.
Reuters reported that Sapporo aims to increase sales of Sapporo Premium Beer in the joint venture markets to around 10 times their 2025 levels by 2035 by leveraging Carlsberg's strong market presence across the region.
