Carlsberg is seeing “increasingly positive feedback” from its customers about the advantages of combining its beer with Britvic’s soft drinks portfolio, following its acquisition of the business earlier this year.

The brewer, which owns brands including 1664, Somersby, Marston’s and Birrificio Angelo Poretti, struck a deal to acquire the soft drinks company in January to form new entity Carlsberg Britvic. Speaking during the firm’s third quarter results today (30 October), Carlsberg CEO Jacob Aarup-Andersen said the company is already seeing the advantages of bringing soft drink and beer together.

“The increasingly positive feedback from major customers in the UK is confirming our very strong confidence in the advantages of combining beer and soft drinks,” he told investors.

The acquisition of Britvic and its brands, which include Robinsons, Tango and Plenish, drove strong volume growth for the total Carlsberg business in the quarter. Reported volumes grew 16.2% year-on-year in the third quarter, while organic volumes (which excludes the acquisition impact) declined by 3%.

Carlsberg Britvic’s CMO on driving a ‘bigger, bolder’ vision for the beverage category

In terms of Britvic itself, Carlsberg hailed “strong” business results, despite ongoing efforts to integrate the two businesses. Volumes in the UK and Ireland rose 4% year-on-year.

Speaking to Marketing Week earlier this month, Carlsberg Britvic CMO Munnawar Chishty spoke about the potential the new combined business held, stating that it would allow the company to drive a “bigger, bolder” vision for the beverage category.

“We can start thinking quite disruptively around our portfolio now, whereas before we were soft drinks, and then they were beer, now I can go actually, there is a blurring going on where people are looking for more interesting drinks,” Chishty said. “They’re not necessarily beers and they’re not necessarily soft drinks. They’re in the space in the middle.”

The potential the acquisition holds was reflected today by Carlsberg’s CEO.

“The long term value creation opportunities from this acquisition remains very strong,” Aarup-Anderson asserted.

Protecting investment

Across the business, Carlsberg claims to be taking “decisive actions” to adjust its costs.

“We have since early summer, taken actions to adjust our cost base to mitigate the impact from the subdued consumer environment,” CFO Ulrika Fearn said.

The company has been facing weak consumer environments in markets including China and Poland, it reported.

The aim of undertaking these cost actions is to allow Carlsberg to maintain “uninterrupted investments” in the business.

“These actions will protect earnings growth and at the same time secure the financial flexibility to allow us to increase our commercial investments in digital tools and capabilities and also in sales and marketing investments,” Fearn added.