Carlsberg Group’s three breweries in Ukraine faced a suspension of production in 2022. However, operations have gradually resumed in recent months. The establishment of a new production line in Kiev will not only optimize operations but also meet consumer demand while increasing the production of products in tin cans by 80%.
In response to Carlsberg’s investment announcement for 2023, Ole Egberg Mikkelsen, Ambassador Extraordinary and Plenipotentiary of the Kingdom of Denmark to Ukraine, emphasized the symbolic importance of the new production line. He stated that this investment represents the faith of a global player and industry leader in Ukraine, despite the ongoing conflict. Mikkelsen described it as an event of historical significance, being one of the largest foreign investments in Ukraine this year. He stressed that this new production line holds a significance that extends beyond the beverage industry in Ukraine.
Carlsberg Group established its presence in Ukraine in 1996 and has become the second-largest player in the beer market, with a 30% market share in 2020. Over the years, Carlsberg Ukraine has invested over €1bn in the country. Despite the impact of the war, as reported in Carlsberg’s Q1 results of April this year, there has been a recovery from 2022. Volumes have grown by over 50% since the closure of the breweries last year, although they still remain around 15% below pre-war levels.
The Carlsberg Ukraine entity encompasses breweries in Zaporizhzhia, Kyiv, and Lviv. Although operations were suspended in 2022, they have gradually resumed in the spring of this year. With over 1,350 employees, Carlsberg Ukraine ranks among the top 25 taxpayers in Ukraine. Moreover, it estimates that it supports about 20,000 jobs in related industries like hospitality, agriculture, and logistics. Demonstrating its commitment to long-term investment, Carlsberg has announced a two-year internship program in Ukraine, set to commence in September of this year.
In a separate decision, Carlsberg announced its intention to fully divest its Russian business in 2022. The company confirmed in April that it is actively progressing with this complex task of divestment.
Carlsberg Group’s investment in a new production line in Ukraine serves as a testament to their confidence in the country’s potential. Despite the challenges posed by the conflict, Carlsberg looks forward to boosting operations, satisfying consumer demand, and continuing its legacy as a key player in the Ukrainian beverage industry.