The market for dark malt beverages is geographically fragmented, and consumer preference for dark malt beverages is rooted in tradition. The markets for dark malt beverages in established economies such as Europe, USA and the Caribbean are expected to be structurally stable in the coming years. Demand for beer and dark malt beverages is expected to show a slight structural increase in a number of developing countries. The slight growth should be viewed in light of the macroeconomic challenges facing many countries in Africa and the Americas, whose development is to a large extent characterised by declining raw materials prices, lower foreign investments and a shortage of “hard” currencies.
Profile Malt Beverages and Export
The Malt Beverages and Export segment comprises the export and licence business for malt beverages and beer export to other markets. Malt Beverages and Export accounted for 8% of the Group’s net revenue and for 11% of allocated EBIT for 2016 (2015: 8% and 11%, respectively).
The business area Malt Beverages and Export comprises an export and licence business, primarily relating to non-alcoholic malt beverages but also to beer export under the Faxe brand. The key market areas for our malt beverages and Faxe export are countries in the Americas region and Africa as well as, in the case of malt beverages, among ethnic groups from these areas living in and around major cities in Europe and the USA. We have several internationally strong dark malt beverage brands which are sold in the premium segment. Vitamalt is assessed to be the malt brand with the broadest global distribution, whereas Supermalt and Powermalt hold strong regional positions. The malt beverages and export markets are primarily supplied by export from our Danish breweries, but also in certain cases on the basis of licence agreements with local breweries. The sales organisation, which is to a large extent located in the individual markets, cooperates closely with our distribution partners on commercial priorities and marketing initiatives.