What's going on?

If Carlsberg did� first-half financial results, they would be disappointing! That�s not as catchy as Carlsberg�s famous ad campaigns, but that�s exactly what happened on Wednesday as Carlsberg�s stock fell more than 4%.

What does this mean?

The Denmark-based beer maker reported first-half revenue that was slightly lower than research analysts expected it would be (due, partly, to weaker currencies in some of its major markets, which translate back to lower revenue in Danish kroner terms). Also, it did not raise its own expectations for future profit, as some investors were expecting it would (leftover inventory following the soccer Euro Championship might have something to do with it).



Nevertheless, the underlying story might be more positive: profit grew by a better-than-expected clip of 8%. Also, the company�s relatively new CEO has already begun selling off underperforming businesses that Carlsberg owns and will likely look to sell more.

Why should I care?

For the stock: Probably the best time to execute is� now!
Earlier this year, Carlsberg laid out a seven-year plan to focus, amongst other things, on premium brands in big cities and expanding its craft-beer portfolio. It�s still early days for the plan, but investors are paying close attention. The volume of beer sales declined in the first half of this year, but that will be less of an issue if Carlsberg is able to sell its products for a higher profit (a.k.a. improve its margins) � as it intends to do with its premium brands.


For you personally: That craft beer isn�t necessarily from some small brewer.

Carlsberg, like other beer majors, have noticed our predilection for trendier, hoppier lagers, a.k.a. �craft beer.� A shift toward selling more craft beer is a significant part of Carlsberg�s plans to make more money. That�s why it�s been inventing its own �craft� beer, like the Shed Head (it also partners with third-party craft breweries and, presumably, might look to acquire some as it pursues its strategy).