Carlsberg raises outlook as Britvic soft drinks offset weak beer demand

Carlsberg has raised its earnings outlook after stronger-than-expected growth in soft drinks and alcohol-free beer helped offset declining demand for traditional beer across western Europe.

The Danish brewer said the benefits of its £3.3bn acquisition of Britvic, completed last year, were arriving faster than anticipated. The deal added brands including Robinsons, Tango and Jimmy’s Iced Coffee to Carlsberg’s portfolio and has helped diversify the group beyond beer.

Carlsberg’s beer volumes fell to 52.2mn hectolitres in the first six months of 2026, from 52.7mn a year earlier. Western European volumes were particularly weak, declining 3.9 per cent as the company faced difficult market conditions and changing drinking habits among younger consumers.

The decline was partly offset by a 7.8 per cent increase in soft-drink volumes, largely reflecting the Britvic acquisition. Alcohol-free beer volumes also rose 11 per cent, with western Europe delivering particularly strong growth.

The performance has prompted Carlsberg to narrow its full-year earnings guidance towards the upper end of its existing range, helped by faster-than-expected delivery of cost savings and synergies from Britvic.

Jacob Aarup-Andersen, Carlsberg’s chief executive, said the company had delivered “solid top-line and earnings growth” despite an uncertain macroeconomic environment, pointing to strong momentum in soft drinks and alcohol-free products.

The figures highlight the strategic importance of the Britvic deal as traditional beer consumption comes under pressure. Carlsberg is increasingly relying on a broader beverage portfolio to compensate for slower growth in its core market.

The shift also reflects a wider challenge for European brewers, which are confronting weaker alcohol consumption while consumers show greater interest in lower-alcohol alternatives and soft drinks.

For Carlsberg, the immediate test is whether the momentum from Britvic can translate into sustained earnings growth rather than simply cushioning a prolonged decline in beer volumes. The company’s upgraded outlook suggests management believes the diversification strategy is beginning to deliver sooner than expected.