February 4, 2022
(press release)
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Setting sail for the next five-year journey, Carlsberg today announces its new SAIL’27 strategy. Since its launch in March 2016, SAIL’22 has been providing a clear overall direction for Carlsberg, resulting in a healthy and strong company. In the strategy period, we have delivered strong progress for our SAIL’22 financial KPis. We have rejuvenated our company culture, and launched the Together Towards ZERO sustainability programme, setting sustainability targets for 2030, and making us the first brewer to set Science Based Targets. In addition, a significant cash return has been delivered to shareholders through dividends and share buy-back. Today, we are launching our new company-wide strategy SAIL’27, which builds on the very strong foundation and successes of SAIL’22 while refreshing and expanding our priorities and raising the bar. 2023 will therefore be the first year of SAIL’27. Introducing SAIL’27 With SAIL’27, we will continue our successful journey and capture long-term growth opportunities. We are increasing our financial ambitions for the SAIL’27 period: We expect an organic revenue growth rate of 3-5%, and an organic operating profit growth above revenue growth. In developing SAIL’27, We have aimed at keeping and sharpening our strong strategic, organisational and financial dynamics while ensuring that our direction-setting was refreshed and that our new strategy reflects expected consumer, customer, societal, regulatory, economic and geopolitical trends. “SAIL’27 is the exciting next step in the evolution of Carlsberg. Co-created by a large group of employees and leaders, and built around our purpose, SAIL’27 has clear choices for brands, categories, markets and capabilities, and steps up our ambitions for top- and bottom-line growth” says CEO Cees ‘t Hart. In essence, SAIL’27 focuses on five strategic levers – portfolio, geographies, execution, culture and funding the journey – for which we have made distinct strategic choices, defining the focus of our efforts and resource allocation. Our strategic levers and choices should be viewed as an integrated set of activities that together will drive value for all stakeholders. “SAIL’27 is built around our purpose of brewing for a better today and tomorrow, and our ambition of being the most successful, professional, and attractive brewer in our markets,” Cees ‘t Hart says. Co-creation SAIL’27 is a collaborative, company-wide effort, co-created by over 200 Carlsberg employees from more than 30 different markets. “Talents, experts and leaders from all over Carlsberg Group have brought their day-to-day knowledge and fresh ideas into this new strategy. They have assessed the impact of the current strategy on their local business or function, shared learnings and trends they see impacting the business and challenged our thinking on the future strategy. By bringing such a diverse set of voices the process we have created an even stronger strategic path for Carlsberg,” says Marcela Linke, Director, Group Strategy. Together Towards ZERO and Beyond As part of our sustainability programme Together Towards ZERO, we were one of the first companies to introduce science-based climate targets and set ambitious targets for carbon, water, health & safety and responsible drinking. We have made strong progress and will continue to focus on delivering against our targets for 2022 and 2030. In SAIL’27, we will build on this existing momentum and performance, while expanding the scope and raising our ambitions, launching an updated ESG programme that we call Together Towards ZERO and Beyond. We will provide more details on the expanded programme, including updated targets and ambition levels for carbon and water and a comprehensive introduction to our new focus areas – sustainable agriculture and packaging – in April. FACTS: OUR PORTFOLIO CHOICES The beer category continues to offer attractive long-term volume and value growth opportunities, though with different growth dynamics between categories and markets. Our portfolio choices target these growth opportunities. In addition, we see further attractive growth opportunities for selected categories beyond beer. OUR GEOGRAPHICAL PRIORITIES Today, the Group has attractive widespread geographical presence and no. 1 or 2 positions in 22 markets across Western Europe, Asia and Central & Eastern Europe. While market dynamics are different in the three regions, they all offer appealing long-term revenue and earnings growth opportunities. OUR EXECUTION EXCELLENCE Excel in execution remains a key priority in SAIL’27. We will support our portfolio and geographical priorities by stepping up and continuously improving our execution capabilities. OUR WINNING CULTURE To deliver on our ambition of being the most successful, professional, and attractive brewer in the markets where we operate, our company culture is key. Our winning culture focuses on our people, our behaviours and our contribution to societies at large. FUNDING OUR JOURNEY Funding our Journey will be important to free up resources, enabling us to invest more in our brands, allocate significantly higher investments to certain markets, step up investment in capability building and Together Towards ZERO and Beyond, and offset inflationary pressures.
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