9/30/1998 8:10 

Carlsberg A/S and The Coca-Cola Company have reached an agreement on their future co-operation in Norway and Finland, and significant capital investments within the framework of their joint venture company, Coca-Cola Nordic Beverages A/S (CCNB). Carlsberg has a 51% shareholding in CCNB, while The Coca-Cola Company holds the remaining 49%.

With the expansion to Norway and Finland, CCNB's activities within the four Nordic countries will cover 24 million consumers. CCNB expects in the coming year to achieve a turnover of more than Dkr6-8 billion.

The Norwegian market is characterised by a particularly high consumption of soft drinks per head, at around 132 litres per year. Finnish consumption per head of 55 litres per year represents a significant potential.

In Norway, a newly-built factory near Oslo will become responsible for a significant part of the Norwegian market when CCNB assumes responsibility at the end of this year. With this change, CCNB has its own sales and distribution system that covers 80% of sales in Norway.

In Finland, Coca-Cola Juomat Oy, CCNB's new Finnish subsidiary will begin an arrangement with Oy Sinebrychoff Ab, which is 60% owned by Carlsberg, for the production of The Coca-Cola Company brands at Sinebrychoffs factory in Kerava, where production capacity will be expanded. Sinebrychoff will also jointly distribute The Coca-Cola Company products.

In Denmark, the production, sale and distribution of The Coca-Cola Company's products is carried out by Coca-Cola Tapperierne A/S (formerly Dadeko A/S), with production and bottling equipment in Glostrup and Fredericia.

CCNB's Swedish subsidiary has recently opened a factory south of Stockholm to supply the whole country with The Coca-Cola Company products. CCNB and the 60% Carlsberg-owned Falcon Breweries AB has established a distribution company that jointly distributes soft drinks and beer.

The CCNB joint venture was established on October 1, 1997, following approval by the EU Commission in September 1997. Relevant competition authorities will be notified of the new agreement as necessary. The joint venture includes the four Nordic countries already agreed on, and is planned to be extended to the Baltic region in the near future.

Against the background of the significant investment that will take place in CCNB, Carlsberg expects to achieve a satisfactory return as a result of the improved efficiency in production, distribution and marketing.