Carlsberg Group is expanding its strategic partnership with PepsiCo with a new agreement that will see the Danish brewer bottling PepsiCo beverages in Kazakhstan and Kyrgyzstan, effective 1 January 2026.
The new agreement will see Carlsberg and PepsiCo cooperate in the production, sale and distribution of non-alcoholic beverages in both countries.
Jacob Aarup-Andersen, CEO of Carlsberg Group, stated, “This new agreement adds significant volume to our business in Kazakhstan, strengthening our presence in the market and further building our business in Kyrgyzstan.
“We are happy to see our longstanding partnership with PepsiCo expand further into these two markets, underlining the long-term potential in the collaboration between PepsiCo and the Carlsberg Group.”
Investment In Expansion
Carlsberg plans to invest over €100 million in building a new production facility for soft drinks in Kazakhstan as it seeks to expand the overall business by more than double.
The investment is expected to deliver a double-digit return on invested capital (ROIC) from year one and will be accretive to group ROIC by year three, Carlsberg noted.
Carlsberg Kazakhstan holds the top position in the beer category and had a market share of 38% in 2023.
“We are very happy to further expand our strong collaboration with the Carlsberg Group by adding these two important markets, which, building on Carlsberg’s in-market strength, will elevate our sales and distribution capabilities for our brands in Kazakhstan and Kyrgyzstan,” added Silviu Popovici, CEO of PepsiCo Europe.
Carlsberg and PepsiCo have existing bottling partnerships in five other markets across Europe and Asia, namely Norway, Sweden, Switzerland, Cambodia and Laos.
Earlier this year, Carlsberg agreed to acquire Britvic plc. The deal, upon completion and subject to regulatory and legal requirements, would allow Carlsberg to produce and distribute soft drinks for PepsiCo in the UK and Ireland.
