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Canadian increase of beer consumption - ALSO OF FAXE BEER

Today, Royal Unibrew A/S has obtained a strong position with its Faxe brands through sales in the Canadian beer and liquor stores. While we are in all of the 7 biggest provinces in Canada, we are focussing our sales efforts mainly on Ontario, British Columbia and Nova Scotia where all of our brands are positioned as authentic Scandinavian high-quality beer easily recognized by the Viking on the cans and POS material.

The product portfolio, all in 50 cl. cans, includes Faxe Premium, Faxe 10%, Faxe Strong, Faxe Amber, Faxe Festbock and Faxe Red.


General market conditions

Beer is mainly sold through the more than 3000 beer and liquor stores in all provinces except Alberta, which is privatized. The Canadian liquor boards are independent monopolies, controlled by their provincial governments. Each jurisdiction operates its own business, although they must follow federal rules for product and packaging standards.

The recent years the beer category has grown, and it is expected to grow even further in the future. However, imported beer has increased at a much higher pace than domestic beer, and it is expected to account for approx. 13% by 2008.

The market is highly dominated by sales of lager/pilsener beer which has strengthened in market shares in recent years. Premium lager, ales/Stouts and specialty beer each accounted for approx. 5% of the market while the rest is accounted for by non-alcoholic beer.

Ontario and Quebec accounted for approx. one third, respectively, of the market value in Canada, followed by British Columbia and Alberta while the remaining nine provinces only accounted for a smaller part of the market value. Labatt/Inbev and Molson/Coors are the key rivals in Canada with market shares of approx. 40% each. The rest of the market is made up of smaller breweries/brands.


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