Riga, Latvia – Carlsberg Group is poised to significantly reshape the beverage landscape in Northern Europe, expanding its partnership with PepsiCo even as simultaneously phasing out its long-standing relationship with Coca-Cola. The Danish brewer will assume responsibility for bottling PepsiCo beverages in Denmark, Finland, and the Baltic states beginning January 1, 2029, as existing agreements with Coca-Cola expire at the end of 2028.
The move builds upon Carlsberg’s existing PepsiCo bottling operations in Sweden and Norway, extending its reach to a total of 14 markets across Europe and Asia. This expansion follows Carlsberg’s 2024 acquisition of Britvic, which secured rights to produce and sell PepsiCo brands, including Pepsi, 7UP, and Mountain Dew, in Great Britain through 2040.
However, the transition isn’t without its complexities. Carlsberg has yet to determine the location of a bottling plant for the Baltic market, despite preparations to take over production from Cido Group starting in 2029. This uncertainty comes as Cido Group, which has produced PepsiCo drinks in the Baltics since 1994, prepares to cease manufacturing the brands after nearly three decades of partnership with its parent company, Royal Unibrew.
Cido Group reported a turnover of €90.4 million ($98.3 million) in 2024, representing a 5.2% increase from the previous year, although profits experienced a 28.8% decline to €6.4 million ($7.0 million). The shift reflects a broader trend of consolidation within Europe’s beverage bottling industry, with global brands increasingly relying on fewer, larger partners for production.
Royal Unibrew anticipates a revenue reduction of approximately 13% as a result of losing the PepsiCo partnership in the affected markets. The company plans to mitigate this impact through growth in its own brands and cost reduction measures. The decision highlights the evolving dynamics within the competitive beverage industry and the strategic importance of securing key bottling partnerships.
Meanwhile, Carlsberg reported a 3% increase in first-quarter earnings, according to company filings. The company did not provide further details regarding the financial impact of the PepsiCo expansion in its recent announcement.
