Solid business performance and record tax payments by Carlsberg Azerbaijan in 2024

Carlsberg Azerbaijan, the leader in the country's brewing industry, demonstrated solid set of results in 2024, including record tax payments totaling over 40 million manat.

Company Performance

Despite numerous challenges, the company increased sales volume by 3.0% compared to 2023, resulting in a 6.6% net revenue growth due to a more favorable product mix.

A particularly notable growth was observed in the modern trade channel (retail chains), where sales rose by 10.1%, driven by the installation of trade equipment and additional sales points across all national retail clients. In the HORECA segment (hotels, restaurants, cafes), growth reached 18.4%, fueled by increased sales and coverage of premium brands, as well as the rise in draft Xırdalan sales. Meanwhile, in the traditional trade channel (small stores), a decline of 7.8% was observed. This decrease is due to a shift in consumer preferences towards modern retail formats, reflecting changing market trends.

Exports also showed positive dynamics in 2024, with a 255% increase compared to 2023.

Brand Growth and Initiatives

In 2024, Carlsberg Azerbaijan launched new beer varieties that received positive feedback from consumers. The company’s flagship brand, Xırdalan, showed a growth of 20.1% compared to the previous year. Key growth drivers included the new products Xırdalan Draft Premium, Xırdalan 0.0, and new offerings in the strong beer segment.

A standout moment was the launch of Xırdalan 0.0, the first locally produced 0.0 alcohol beer in Azerbaijan, thanks to the innovative technology of Carlsberg Group. Xırdalan 0.0 became the official partner of the Azerbaijan National Football Team and the Baku Marathon “Küləyə qalib gəl” (Win the wind).

Carlsberg successfully partnered with the Football Fan Fest platform at the EGP Arena, where football matches were broadcast, contributing to 26.8% growth of sales volume. Kronenbourg 1664 Blanc almost doubled its sales volume by reaching record results of 96.6% compared to 2023, driven by successful marketing strategies and partnerships during the high season. The brand also supported the Essenso Lavender Field Festival in Gabala and one of the year’s most prominent events — Baku Fashion Week. Tuborg became the official partner of the DreamFest 2024 international music festival, driving a 15.2% increase in sales volume.

“We are incredibly proud of the results we’ve achieved and deeply grateful for the continued support and trust of our consumers, partners, and employees. As part of the Memorandum of Understanding signed with the Ministry of Economy of the Republic of Azerbaijan in 2021, we committed to invest 25 million manat in our brewery, the industry, and our people between 2021 and 2025. I am pleased to confirm that we have successfully fulfilled this investment commitment by the end of 2024. Looking ahead to 2025, we are committed to expanding our investments related to brewery facilities that will help improving our product portfolio and its quality and contribute further to the country’s sustainable development.” said Alius Antulis, Managing Director of Carlsberg Azerbaijan.

Localization of Raw Materials

Since 2021, Carlsberg Azerbaijan has been using locally grown barley in its production. In 2023, the company, in partnership with AzerSheker and Azersun, laid the foundation for the first Malthouse in the South Caucasus with a capacity of over 11 thousand tons, set to open in the first half of 2025.

Sustainability

As part of Carlsberg Group’s global sustainability program “Together Towards ZERO and Beyond,” the company continues to implement eco-friendly technologies, reduce resource consumption, and support local communities. In 2024, significant achievements were made, including a reduction in CO2 emissions by 13.7% as well as a decrease in water and electricity consumption by 15.5% compared to the previous year.

As part of COP-29, Carlsberg Azerbaijan signed a three-year Memorandum of Understanding with the WWF Azerbaijan, aimed at collaborating on water supply, environmental protection, and local community support projects.

Additionally, in 2024, the company continued its active support for the environmental initiative “Save the Caspian!” by organizing beach clean-ups along the Caspian coast in Lankaran, Astara, Khachmaz, Shabran, Siyazan, Sumgayit, and Baku. During this event, 7 tons of waste were collected and recycled from an area of 23 hectares.

In January 2025, during the World Economic Forum in Davos, President of the Republic of Azerbaijan Ilham Aliyev met with Henrik Poulsen, Chairman of the Supervisory Board of Carlsberg Group, and Jacob Aarup-Andersen, CEO of Carlsberg Group. The parties discussed further steps for raw & packaging material localization and expanding Carlsberg Group’s presence in Azerbaijan.