How Carlsberg's UK Soft Drinks Expansion With PepsiCo Has Changed Its Investment Story (CPSE:CARL B)

Carlsberg Britvic, in partnership with PepsiCo, recently announced an exclusive UK distribution agreement for Poppi, a US prebiotic soda brand, and is exploring further portfolio expansion with Mexican-style beer and functional soft drinks. Carlsberg has also invested £20 million in a new soft drinks canning line at its Rugby facility, increasing capacity and reinforcing its focus on production and supply chain enhancements in the UK. We will explore how Carlsberg's expanded soft drinks distribution and production capacity in the UK could influence its investment narrative.

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Carlsberg Investment Narrative Recap

To be a Carlsberg shareholder, you would need to believe that the company's move into high-growth non-beer segments, such as functional soft drinks, can balance out stagnating beer demand in Europe and volatile conditions in Asia. The recent UK distribution agreement for Poppi and the new soft drinks canning line are promising steps, but these developments are unlikely to override the most pressing short-term catalyst: successful integration and scaling of Britvic's portfolio. The biggest risk remains whether margin pressure and higher leverage from this acquisition can be offset quickly enough by growth in new categories.

Among recent announcements, Carlsberg’s £20 million investment in its Rugby facility stands out. This expansion of soft drinks production capacity underlines the company’s ambition to build a stronger presence in non-beer segments, which is essential to capturing revenue growth as traditional markets mature or slow.

But while pace in the UK soft drinks market is encouraging for some, investors should also be aware of the challenges of integrating Britvic’s lower-margin portfolio into group earnings, especially if...

Read the full narrative on Carlsberg (it's free!)

Carlsberg's narrative projects DKK101.1 billion revenue and DKK10.1 billion earnings by 2028. This requires 7.2% yearly revenue growth and a DKK3.4 billion earnings increase from the current earnings of DKK6.7 billion.

Uncover how Carlsberg's forecasts yield a DKK972.95 fair value, a 30% upside to its current price.

Exploring Other PerspectivesCPSE:CARL B Community Fair Values as at Oct 2025

Estimates from four members of the Simply Wall St Community value Carlsberg shares between DKK894 and DKK1,743. Even as community forecasts range widely, persistent concerns about Carlsberg’s emerging market execution remain front of mind for many and could have meaningful consequences for the company’s future growth. Consider how these differing perspectives might reshape your own view.

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Explore 4 other fair value estimates on Carlsberg - why the stock might be worth over 2x more than the current price!

Build Your Own Carlsberg Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Carlsberg research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision. Our free Carlsberg research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Carlsberg's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CARL B.cpse.

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