Entry to the 2019 CBS Global Case Competition, focusing on growing the top line of the Carlsberg Group. Contributing members: Victor Shmulevich, Dante Agosti-Moro, Piero Ferrando, Simon Roberts.

1. 1
Brewing For A Better Today & Tomorrow

2. • Carlsberg continues to be an industry powerhouse
• Observed two profit upgrades in 2018
• Changing consumer behaviors and expectations are limiting
additional growth in the beer market
Situation
Complication
Question
The Carlsberg Group can implement a variety of strategies in all levels
of the value chain to improve the experience of customers, vendors,
and brewers to maximize growth
Solution
Implement all encompassing strategies, that drive revenue growth,
strengthen our brands, and reinforce Carlsberg’s social values,
ultimately improving the beer experience for the consumer, the
vendors, and the brewers
• Conflicting products and value propositions require
reevaluation for sustainable future growth
• Vendor outlets are unable to meet consumer preferences
while struggling with supply chain management
• Mature Western European market inhibits growth potential
for flagship Carlsberg brands
How can Carlsberg differentiate and
disrupt the on-trade scene, or find
other high-value channels, to secure a
5% revenue growth in Europe by 2022?
Strategies
Consumer
Leveraging
Carlsberg’s
brands to provide a
memorable, personalized
beer experience to the
end customer
Vendors
Developing
physical and
digital technologies to
streamline distribution
and inventory management
Brewers
Expanding
partnerships through
M&A, maintaining
local quality while also
ensuring Carlsberg’s expertise
Summary Insights Recommendations Impact Conclusion 2

3. Current Beer Lines
2018 Volume
Growth
Premiumization Scalability Adaptability Result
Local Power
Brands
International
Brands
Alcohol-Free
Brews
Craft &
Specialty
During on-trade sales situations, a preference towards the “exclusive
experience” of craft & specialty beers is evident over international
brands that are perceived as common
These beers benefit by maintaining
regionality while continuing a scalable
procurement model. However, they
are still subject to lower volume growth
AFBs are growing quickly and
represent a strong opportunity in
Wester Europe, however they still are
only a small portion of the market
Craft beers, while giving consumers
the best beer experience, now
require additional resources to
grow in presence
Core beers are already mature
Carlsberg brands. While easily scalable,
these brands are facing increased
consumer resistance
Slower core beer volume growth compared to craft &
specialty growth due to lack of “exclusive experience”
This has led to an untapped opportunity within the
craft & specialty and AFB beer markets
15%
29%
Source: Case Material; Business Insider
Summary Insights Recommendations Impact Conclusion 3

4. Due to increased health concerns, consumers are moving away from
beer and towards AFB’s and craft & specialty indulgences and
experiences
2017 Non-Alcoholic Beverage Growth est. 6-7%
Growing Health Concerns Surrounding Drinking Beer
This presents an opportunity for Carlsberg to target these alternative beverages, specifically the
AFBs for reduced health concerns and craft & specialty alternatives for special experiences
Non-alcoholic brews are a growing
alternative to beer
Craft & specialty beers continue to
grow in popularity
Beer has the highest
caloric value of any
alcohol
Beer can raise blood
pressure level
Beer is attributed with
bad cardiovascular
health
0
20
40
60
Sweden UK Denmark France
Growth All Beer Growth Non Alcoholic Brews
Source: Case Material; Web MD; Bord Bia – Irish Food Board, 2017; Statista; WBOC16
831 931 1052
1210 1396
0
500
1000
1500
2012 2013 2014 2015 2016
MmofLitres
2012 - 2017 Craft Beer Consumption Growth Rate of 67.9%
Summary Insights Recommendations Impact Conclusion 4

5. On-trade vendors lack both digital and physical technologies to
understand local consumer preferences and streamline supply chains
Summary Insights Recommendations Impact Conclusion
Most Common Pain-Points for On-Trade Alcohol Vendors
Unappealing Tap Lineups Inventory Guesswork Premature Keg Untapping Unclear consumer profiles
Vendors lack the business intelligence required to maximize both efficiency and customer experience
5
Source: Astute Solutions

6. Taking into consideration demographic changes and shifting cultural
norms, use a hands-off marketing approach guided by the global
demand space model
Summary Insights Recommendations Impact Conclusion
Economies of Scale & Trusted Tradition Exclusive Experiences and Distinct Identities
The flexibility to take risks in
uniquely communicating the
values that the specialty
brews stand for
Local subsidiaries will continue to operate independently, partaking in their own production, sales, and distribution
while taking advantage of financing and marketing resources from Carlsberg, the parent company
Identify campaign base on global
demand space model
• Tuborg -> Music and Fun
• Grimbergen -> Indulgence
Allow brand managers to launch
campaigns with a local focus
• Highlight the social experience
and uncover consumers’
emotional drivers
Guide future decision making with
past KPIs
• Online video views,
clickthrough rate, online sales
conversions, etc.
6
Source: Company Filings; Inc

7. Non-alcoholic beers are one of Carlsberg’s strongest performers, and
as the market for AFB’s grows, Carlsberg must innovate to stay
ahead; serving AFB’s on tap
Paris + Charles
De Gaulle
Marseille + Nice
Bordeaux
Copenhagen
City Center +
Kastrup
Odense
Aarhus
Securing the European AFB on-tap market
Leverage relationships
with existing on-trade
clients where Carlsberg is
in top market position to
test on-tap AFB
Promote on-tap AFB at
concerts and sports
events – have a Carlsberg
stand serving AFB
Advertising campaign in
cities – TV/Billboard
Supply draught AFB at
major airports,
downtown restaurants,
hotels, and nightclubs
Younger consumers are trending toward healthier, low-alcohol brews. Together with Carlsberg’s belief that beer is a social catalyst, having AFB’s
on-tap will allow health-conscious consumers to engage in the shared experience with their friends and family with a fresh AFB, right off the tap
7Summary Insights Recommendations Impact Conclusion
Source: Morning Advertiser; Brewhound;

8. Loosen Status Quo Commit to Change Explore Solutions Commit to Solution Justify Decision Make Decision
• The OnTAP Portal will be a cloud-based business intelligence tool to
- Assist on-trade customers making the right choices
- Providing live information about sales and usage
- Product management services for inventory maintenance
Waste from unused kegs
and beer reduced
significantly
Client analyzes intraday,
weekly, and seasonal
beer trends
Client allocates required
beers based on demand
model
DraughtMaster
• The DraughtMaster allows for the perfect beer by
- compressed air to create pressure in the keg, pushing out beer
without adding CO2
- Increasing shelf life from 3 to 31+ days
- The systems’ ability to track and monitor beer flow is also noted
8
Provide digital and technological solutions to remove friction points
in the on-trade buyer journey
Summary Insights Recommendations Impact Conclusion
Source: Beverage Wholesaler

9. Integrate cloud software and Internet of Things integrated hardware to
create a full service beverage management system: the DraughtMaster+
DraughtMaster+ Solutions
State-of-the-art keg
that keeps beer fresh
and on-tap for 30 days
Tracking which brands
are consumed in
which circumstances
Providing a suite of analytics
to help on-trade clients
model consumer demand
and react appropriately
Keg Type Preservation Local Data
Global
Analytics
Regular Keg
DraughtMaster
DraughtMaster+
Summary Insights Recommendations Impact Conclusion
DraughtMaster+ is an integrated system combining the technology of the
original DraughtMaster and the OnTAP portal. This combination of the
resources will allow for better management and less waste of products
Collect Data
•Utilize the Draught
Masters’ monitoring to
collect data on regional
consumption patterns
(quantitative)
•Time-series data also be
recorded, consumer
behaviours become more
easily monitored and
taken care of
Identify Patterns
•Use machine learning/AI
(Azure or AWS) to predict
which products are likely
to do well in previously
untested markets
•Provide recommendations
for new flavour profiles
based on macro-level
trends
Remarket and Leverage
Findings
•Create value for retailers
by recommending
products suited to their
clientele’s evolving
preferences
•Evolve supply chains to
be autonomous and self-
sufficient
Real time usage
statistics, including
auto-order refill service
9
Source: Case Material; Forbes

10. Carlsberg must continue to rapidly expand the acquisitions of local
breweries and microbreweries to expand the craft & specialty
portfolio using strategies currently in place with SAIL ‘22
Carlsberg will purchase established local breweries
with unique product offerings and established retail
customers, including AFBs
“Strengthen the Core” – Brand diversification
and segmentation gives Carlsberg more local
presence and options for diverse products
“Position for Growth” – Working with local
brands creates more effective, local-centric
ad campaigns for small brands that can used
as segues to multinational brand marketing
“Excel in Execution” – The acquisition of
multiple brands with established production
capacity and marketing efforts allow for growth
“Create a Winning Culture” – Expanding
resources such as DraughtMaster an OnTAP
help local retailers with sustainability, data
analytics and customer needs
Carlsberg will provide these breweries access to
company technology such as the DraughtMaster and
OnTAP
Using Carlsberg’s funding and resources, these local
companies can expand production and marketing
efforts
These efforts culminate in increased local brand
awareness and thus expansion into retailers such as
restaurants and cafes
“In the last two decades, Carlsberg Group has grown mostly through mergers and acquisitions of existing breweries and beer brands”
10Summary Insights Recommendations Impact Conclusion
Source: Case Material; Business Wire

11. Summary Insights Recommendations Impact Conclusion
The new initiatives undertaken by Carlsberg would support the
company’s Corporate Social Responsibility model and satisfy the Triple
Bottom Line
11
1
2
3
DraughtMaster:
Reducing water waste and cutting the carbon
footprint by increasing the beer shelf life in the keg,
and allowing for clients to recycle the device
On-trade AFB offering:
Increasing non-alcoholic options to Carlsberg
consumers, one step closer to zero irresponsible
drinking
OnTAP Technology:
Reducing the carbon footprint by allowing clients to
track their beer reserves, resulting in clients only
receiving the beer they need, and cutting down on
redundancies
Source: Case Material; Carlsberg Group Strategic Overview

12. Implement immediate strategic initiatives to inject both capital and
brand awareness in order to drive future growth and reach target
growth rates
Summary Insights Recommendations Impact Conclusion
2019 2020 2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Marketing
OnTap
DraughtMaster+
Micro-Brewery Expansion
Investment
Brand Manager Initiative (3%, approx. €10m/year, increase in marketing expenses)
AFB Awareness Campaign (approx. €3.6m/year)
Launch of Platform (€160k)
€20.9m
Platform Maintenance (€10k per year)
Product Launch (€4.5m)
Impairment Costs(€1.1m per year)
Acquisitions of Micro Breweries (1.5% increase, €6.5m, per year)
€30.8m €25.1m
12
Immediate investment in implementation will stimulate growth, creating both a
long and short term action plan to ensure Carlsberg remains an industry leader
Source: Case Material; Company Filings

13. The OnTAP, DraughtMaster+, and AFB expansion face several risks
that may hinder revenue growth
Summary Insights Recommendations Impact Conclusion
Risk Scenarios Mitigating Actions
OnTAP is not fully utilized by vendors
Overestimation of AFB demand
DraughtMaster+ is not widely adopted by
clients
3
Prior to full launch, have a beta phase where a limited amount
of on-trade vendors trial the platform to provide feedback and
develop and initial userbase
Revert to DraughtMaster sales, with follow up on upgrade after
conversion
Reduce total number of locations where AFB’s are served on
tap, focus on getting the word out through sponsorships,
advertisements, and pop-up shops in downtown cores
13
ImpactonTopLine
Probability
Risk Map
1
1
2
3
2
Health Concerns
• Expand Alcohol Free Beverage (AFB) reach and
diversify product portfolio
• Change the conversation; Market brews as
exclusive experiences
Stagnant European Beer Consumption
• Focus on the evermore growing craft & specialty
brew segments
• Utilize large resource pools to help small
subsidiaries become industry leaders
Rise of Substitute Beverages
• Grow on-trade awareness by adding value to
retail partners through strategic initiatives
• Grow SAIL 22 and TTZ initiatives to add
disruptive value in consumer eyes
Macroeconomic Risks and Mitigations
Source: Case Material

14. Strategic initiatives will increase revenue growth at an average 3.67%
per year, ultimately reaching 5.07% at the end of FY 2021
Summary Insights Recommendations Impact Conclusion
0.62%
2.49%
3.44%
5.07%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
6000
6200
6400
6600
6800
7000
7200
7400
2017 2018 2019E 2020E 2021E
GrowthRate
BillionsofEuros
Revenue Forecast
Investments will inject capital to further
growth potential…
…while driving revenue in European
markets and reaching growth target…
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2019E 2020E 2021E
Cost Breakdown
Acquisitions Marketing OnTap DraughtMaster +
Key Assumptions
• Acquisition annual growth rate of 1.5%
• Marketing expenses annual growth of 2%
• €2M cost of OnTAP implementation and €500K
maintenance costs
• 0.15% COGS growth rate attributed to DraughtMaster+
Key Drivers
• SAIL 22 integration in new micro-brewery acquisitions
• Value added from OnTAP and DraughtMaster+
• Marketing initiatives from “The Experience” campaign and
AFB proliferation
Source: Company Filings; Case Material; Salesforce (OnTap Implementation Cost)
…ultimately re-branding Carlsberg
while adding value to clients
Emphasizing the
exclusivity and
experience of Carlsberg
brands
Creating a disruptive
product to better serve
client needs
Tapping into unique craft
beer segment while
applying unique
economies of scale
14

15. The Carlsberg Group can implement a variety of strategies in all levels
of the value chain to improve the experience of customers, retailers
and brewers to maximize growth
Summary Insights Recommendations Impact Conclusion 15
Three main insights were identified
Craft & Specialty Brews
are growing rapidly
Perception changes in
beer consumption
Retailers need consumer
and managerial analytics
Four main solutions were crafted
Granting small subsidiary
brand managers with
marketing solutions
Launching digital and
technological initiatives to
better serve retail partners
Expanding craft & specialty
segments via acquisition
and subsidiary growth
Developing a long term
sustainable strategy
(SAIL ‘22 and TTZ)
These initiatives will provide both short and long term revenue growth and industry dominance
Carlsberg will defend its international brand, reputation and competitive advantage
Carlsberg will differentiate itself from competitors through growth initiatives and technological innovation
Carlsberg will disrupt what consumers thought was possible from a brewing company