33 Regional Reports - Western Europe The financial results of the total Danish busi- ness are in line with expectations. For some years, the Swedish beer market has ex- perienced a declining trend. Paradoxically how- ever, consumption shows a simultaneous increase because about 20% of total Swedish beer con- sumption stems from private import from neigh- bouring countries with lower tax levels. The trend in domestic sales seems to be towards beer types with a higher alcohol content, resulting in a shift in sales from the groceries trade to the state mono- poly outlet, Systembolaget, and restaurants. Overall, Carlsberg Sverige is by far the domi- nant player in the Swedish beer market with a market share twice that of number two. In 2001, Carlsberg Sverige by and large maintained the market shares achieved for the breweryGLYPH<213>s present brand portfolio. The Carlsberg brand in particular In 2001, Danish beer sales decreased by 3% - mainly due to a decline in the on-trade and conve- nience sector. However, total beer consumption in Denmark is estimated to be at level with last year when taking into account the increase in cross- border trade, which is estimated at about 22% of total Danish consumption. Branded beer gained market share from discount beer and private la- bels. The on-trade, which comprises consumption in outlets, is at present undergoing structural changes where traditional beer outlets are disap- pearing, resulting in an overall negative impact on beer sales. The concentration of the retail sector continues with a declining trend in the number of outlets, particularly in the convenience sector. Overall, Carlsberg DanmarkGLYPH<213>s market share was in line with last year. The Tuborg brand showed strong performance whereas the Carlsberg brand and discount beer experienced a slight decline. In- creased consumer preferences for the Carlsberg brand combined with a positive market share trend suggest that the revitalisation programme for the Carlsberg brand launched in 2001 will have a positive effect on the position of the brand. The increase in soft drink duties as at 1 Janua- ry 2001 caused a significant drop in soft drink sa- les. Legal and illegal parallel import as well as cross-border trade increased correspondingly and are now estimated at approximately 50m litres per annum (corresponding to about 10% of the mar- ket). All sales channels are affected by this de- velopment, but the negative impact is strongest in the convenience sector. The Carlsberg and Coca- Cola brands gained increasing market share in the otherwise declining soft drink segment. The leading Danish soft drink producer, Coca- Cola Tapperierne A/S, was integrated into Carls- berg Danmark as a wholly owned subsidiary in 2001. Distribution, telesales, IT, finance and HR have been successfully consolidated with effect from 1 October 2001. Preparations for the upgrade to a new version of SAP are proceeding according to plans, and the new version is expected to be operational by the second quarter of 2002. Group Companies Western Europe Denmark — Carlsberg Danmark A/S The Nordic Region Sweden — Carlsberg Sweden AB Carlsberg Danmark A/S, Copenhagen 100% 4 subsidiaries Pripps Ringnes AB, Stockholm, Sweden 100% 2 subsidiaries Oy Sinebrychoff, Helsinki, Finland 100% 1 subsidiary Carlsberg Sverige Holding Ab, Falkenberg, Sweden 100% 2 subsidiaries Ringnes AS, Oslo, Norway - owned by Pripps Ringnes AB 100% 1 subsidiary Carlsberg-Tetley PLC, Northampton, England 100% 12 subsidiaries Carlsberg Italia S.p.A., Varese, Italy 75% 32 subsidiaries Unicer-Bebidas S.A., Porto, Portugal 44% 11 subsidiaries Hannen Brauerei GmbH, MGLYPH<154>nchengladbach, Germany 100% 5 subsidiaries FeldschlGLYPH<154>sschen GetrGLYPH<138>nke Holding AG, Rheinfelden, Switzerland 100% 15 subsidiaries Carlsberg France S.A., Paris, France 100% International Breweries B.V., Bussum, Holland 16%