Carlsberg to build Kazakhstan factory amid new PepsiCo deal

Carlsberg is to set up a production plant in Kazakhstan as part of a new distribution deal in the country with soft-drinks giant PepsiCo.

The Denmark-based brewer, which already bottles PepsiCo products in countries including Norway and Sweden, has won the contract for Kazakhstan and neighbouring Kyrgyzstan.

The “strategic partnership” comes into effect on 1 January 2026. PepsiCo’s previous distribution partner in both markets was RG Brands.

Carlsberg said it plans to invest roughly €100m ($110m) in Kazakhstan, where it held the number one position in the beer category in 2023 with a market share of 38%.

“This new agreement adds significant volume to our business in Kazakhstan, strengthening our presence in the market and further building our business in Kyrgyzstan,” Carlsberg CEO Jacob Aarup-Andersen said.

“We are happy to see our longstanding partnership with PepsiCo expand further into these two markets, underlining the long-term potential in the collaboration between PepsiCo and the Carlsberg Group.”

Carlsberg has bottling agreements with PepsiCo in Norway, Sweden, Switzerland, Cambodia and Laos.

In July, UK soft-drinks producer Britvic, the bottler for PepsiCo in the UK, accepted a takeover bid from Carlsberg worth £3.3bn ($4.2bn).

Carlsberg secured an agreement from PepsiCo to waive a clause in its bottling contract with Britvic that would come into effect after the takeover.

At the time, Britvic’s non-executive chair, Ian Durant, said: “Crucially, to remain competitive at a time when the market is being shaped by the trend of increasing consolidation among bottling partners, Carlsberg’s agreement with PepsiCo provides the combined group with a strong platform for continued success.”

This week, the UK’s Competition and Markets Authority (CMA) called for comments on Carlsberg’s proposed acquisition of Britvic.

In a statement, the CMA said it is assessing whether the brewer’s proposed takeover could “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.

Just Drinks