Carlsberg Group expands PepsiCo bottling partnership
Carlsberg extends its PepsiCo bottling partnership to Azerbaijan from 2027, expanding to 15 markets as it also finalizes a major Sapporo joint venture across Asia.
AZERBAIJAN – The Carlsberg Group is expanding its strategic partnership with PepsiCo through a new agreement to become the PepsiCo bottler in the Republic of Azerbaijan, effective 1 January 2027.
As part of the deal, the Xirdalan brewery will be expanded to produce the PepsiCo portfolio, a move expected to double Carlsberg’s business in the Azerbaijani market.
With the agreement in place, Carlsberg will hold PepsiCo bottling agreements in 15 markets: the UK, Ireland, Norway, Sweden, Switzerland, Kazakhstan, Kyrgyzstan, Laos and Cambodia, as well as Denmark, Finland, Estonia, Latvia and Lithuania from 2029, and Azerbaijan from 2027.
The expanded partnership reflects the shared commitment of Carlsberg and PepsiCo to build scalable, locally relevant beverage operations that support long-term growth in Azerbaijan.
“We’re excited about the further expansion of our long-standing partnership with PepsiCo to Azerbaijan. With the new agreement, we’re adding PepsiCo’s iconic brands to our strong local beer portfolio in the country and significantly growing our business in that market, which will allow us to offer consumers more relevant and diverse choices across occasions,” said Jacob Aarup-Andersen, Carlsberg Group CEO.
Eugene Willemsen, CEO of International Beverages at PepsiCo, said: “We’re proud to expand our long-standing partnership with Carlsberg to Azerbaijan, an important step in strengthening our footprint across high-potential markets. Carlsberg brings deep local expertise and strong execution capabilities, and together we’re well positioned to accelerate growth, build our brands and deliver even more for consumers and customers across Azerbaijan.”
Earlier this month, Carlsberg entered into an agreement with Sapporo Breweries to form a major strategic joint venture spanning Southeast Asia and Hong Kong, along with a partnership in the UK.
Building on the companies’ collaboration on Sapporo Premium Beer sales in Malaysia, Hong Kong and Singapore since 2024, the joint venture will encompass Carlsberg’s existing operations in those markets as well as Laos, Vietnam and Cambodia. It will carry perpetual exclusive rights to produce and distribute Sapporo Premium Beer across these markets.
Sapporo will also license Carlsberg to produce and distribute Sapporo Premium Beer in the UK and Myanmar under long-term agreements, with both parties exploring opportunities to introduce the brand in additional European and Asian markets.
Carlsberg will hold a 75% stake in the joint venture and retain full operational control across the markets, while Sapporo holds the remaining 25% stake.
Carlsberg will receive a cash consideration of USD 643 million from Sapporo, reflecting a 2025 EBIT multiple of 21.3x. The company intends to use the proceeds to repay debt and for general corporate purposes.
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