Carlsberg Breweries A/s: Brazil Innovation Tournament
Carlsberg Breweries A/S: Brazil Innovation Tournament
As fall 2011 approached, the Business Development team at Carlsberg Breweries A/S began considering their strategic plan for 2012. Having invested in aggressive expansions in China, India, and Russia from 2004 on, the team wondered if now would be the time for Carlsberg to consider the remaining BRIC country – Brazil.
In 2004 Brazil ranked 33rd in per capita beer consumption at 47.6 liters. However, due to its size, Brazils total annual beer consumption of 8,450 billion liters was tied for fourth globally with Russia, behind only China, Germany, and the Unites States. By 2009, Brazils total consumption had risen to 10,700 billion liters, achieving a 5% growth rate from the previous year.
Despite Carlsberg beers being sold in over 150 countries worldwide, the company had very little presence in South America. If the company were to enter South America, the logical entry point would be Brazil due to its beer market size and robust economy. While Brazil was home to mega brewer AB InBev, it was not yet a major beer import market. However signs indicated that might be changing…and fast. In August 2011, Kirin Holdings of Japan, one of the worlds ten largest breweries, announced plans to acquire a controlling stake in Brazilian family owned brewer SchincariolIf Carlsberg were to enter the Brazilian market, the strategy would include launching Carlsberg pilsner beer. Carlsberg pilsner was sold in virtually all of its markets, and represented the companys flagship global brand. Introducing Carlsberg pilsner into Brazil would require starting from ground zero to generate awareness, interest, trial, and repeat buying. Many on the team wondered if the company might benefit from outside perspectives on launching Carlsberg pilsner in Brazil. Specifically, they thought some sort of crowdsourcing initiative might generate creative, out-of-the-box ideas. Perhaps an innovation tournament would provide the team with