KUALA LUMPUR (Feb 12): Carlsberg Brewery Malaysia Bhd (KL:CARLSBG) said the group faces a tougher competitive landscape in Singapore as on-trade sales soften, following the goods and services tax (GST) hike and a challenging transition from Asahi to Sapporo.

On-trade sales in Singapore have weakened as consumers feel the pinch of the GST increase to 8%, compounded by a subdued consumer outlook that has dampened footfall, said Carlsberg Malaysia's chief financial officer Vivian Gun in a result announcement on Wednesday.

Domestically, Carlsberg Malaysia’s transition from Asahi to Sapporo was smooth, but Gun acknowledged that the shift in Singapore has been more difficult, contributing to a 4% decline to RM624 million in revenue for the year ended Dec 31, 2024, as compared to RM651 million in the previous year.

“We see lower premium sales as we transition from Asahi to Sapporo,” she said, adding: “There was also a bit of heavy discounting to maintain the competitiveness of our products in Singapore.” 

Adding to the challenge, Gun said the group no longer holds exclusive distribution rights for Sapporo, limiting its reach to only on-trade channels in Singapore.

To counter softer sales, Carlsberg Malaysia has intensified efforts to promote its existing brands, particularly the 1664 range. In October, the group also introduced WuSu, a high-strength beer from China, as part of its strategy to regain market share and drive growth in Singapore.

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