Carlsberg Malaysia relies on digital to boost weakening sales during pandemic

Carlsberg Malaysia Berhad is banking on digital marketing and e-commerce to recover from huge revenue dip during the pandemic.
In 2nd quarter 2020, Carlsberg saw a 83.7% dip in net profit and a 40.2% drop in revenue, whereas for 1st half 2020 its net profit dipped by 45.3% while revenue dropped by 23.1%.
In 2020, due to the pandemic, Carlsberg Malaysia has shifted away from the traditional retail channels such as coffee shops which had been its strong performer, to digital e-commerce.
Carlsberg Malaysia Managing Director Stefano Clini said the brewer will boost its investments in e-commerce to capitalise on this growing trend. He added that more investments will be channeled to digital marketing and virtual launches, citing the company’s premium beer Kronenbourg 1664 Blanc (Blanc) as a successful case study of such a virtual launch. Clini claimed that ‘Blanc’ was the only beer within its premium category that performed well even during the lockdown due to its virtual launch.
Carlsberg Malaysia’s entire premium category including brands like Asahi Dry and Somersby cider recorded double-digit declines whereas its core Carlsberg beer category saw an overall 17?cline.
Carlsberg Malaysia also aims to trim operating expenses along the supply chain. Marketing initiatives to raise sales include launching its limited-edition Carlsberg Liverpool Champions packaging promotion, changing the packaging for all its Carlsberg core beer formats to Liverpool colours to celebrate the football team’s recent Premier League win, as well as a ‘ring Me Home’ campaign enabling consumers to takeaway beer and stout from on-trade outlets to consumer at home.
Clini also appeals to the Malaysian government not to raise excise duties during the upcoming National Budget 2021 citing the dangers posed by counterfeit beer which will ultimately impact government tax revenue.
Malaysia has one of the highest excise duty for beer in the world at RM175 (US$41.74) per litre of alcohol by volume (ABV).