Malaysia: Carlsberg Brewery Malaysia to raise beer prices in September

Carlsberg Brewery Malaysia Bhd will raise beer prices slightly on Sept 1, 2025, to protect profits amid rising costs and weak demand, as it expects beer sales volume to remain flat this year, The Edge Malaysia reported on August 12.

Managing director Stefano Clini, who said the increase would be in single digits, described the announcement as atypical because the company rarely shares pricing details publicly.

“Our objective is to protect our margin. We’re not aiming to expand them, but we are committed to ensuring they’re not eroded,” he said during a media briefing.

Clini noted that the lack of early stockpiling before Chinese New Year and lower festive demand will hurt sales, reducing annual volume by 3–4%.

He also warned that the price hike could cause a short-term dip in consumption for 2–3 months, but said it’s too early to predict the long-term effect.

That said, Clini expressed confidence in the group’s cost discipline, noting that despite investing hundreds of millions in infrastructure upgrades, the company has kept production costs stable — a rare achievement.

“That’s more than what most companies would achieve — typically, you’d expect costs to rise after such investment,” he said.

Clini added that weak consumer sentiment, inflation, and global uncertainties are still holding back spending.

The upcoming price adjustment will apply only to the Malaysian market.

In contrast, Carlsberg’s Singapore operations are grappling with intense price competition, which Clini described as “value-destructive”. He stressed that the brewer did not initiate the pricing pressure but has had to follow suit to defend market share.

While growth in Singapore is unlikely this year, Clini expressed hope for a recovery in 2026, contingent on market stabilisation.

Carlsberg Malaysia’s corporate affairs director, Pearl Lai, addressed plans for a possible “pro-health” tax under Malaysia’s 13th Plan, which may include alcohol, tobacco, and vapes.

She warned that higher taxes could drive consumers to illegal products, which don’t bring in tax revenue.

Lai noted that Malaysia already has some of the highest alcohol taxes globally, and the last increase was in 2016. Carlsberg is actively engaging with regulators to push for stable tax policies.

Shares in Carlsberg Malaysia shares were up two sen or 0.1% at RM17.28 by the close on August 12, valuing the group at RM5.28 billion. The stock has declined 16.4% year-to-date.