29 Consolidation and Growth Orkla ASA Market trends and structures Although many beer markets are still influenced by local preferences and purchasing behaviours, the trend is expected to move towards increasing demand for international beer brands and growing concentration of the retail sector. This will provide new opportunities for international brewery companies that employ scale economies and GLYPH<210>best practiseGLYPH<211> within administration, production, logistics and market communication. The international brewing industry has experi- enced a heavy concentration in recent years, re- sulting in fewer but stronger players. The restruc- turing process is expected to continue in the years ahead, and Carlsberg Breweries intends to be an active player. A keen focus on increased profitabi- lity will ensure that Carlsberg Breweries plays an active part in the concentration process both through organic growth but also through acquisi- tions of new companies and increases in existing shareholdings in certain associated companies. Another key element to strengthen the Group will be to achieve stronger positions within selected market segments and niches — one of the prere- quisites for high profitability in the business. Today, Carlsberg Breweries is represented in both mature markets with high per capita con- sumption and consolidated competition with strong brand preferences and in markets charac- terised by substantial growth in consumption and significant dynamism in consumer brand preferen- ces — markets that offer excellent opportunities for considerable volume growth based on a strong positioning of Carlsberg BreweriesGLYPH<213> brands. Geo- graphically, Carlsberg Breweries will primarily con- centrate its efforts on expanding market positions in Western Europe and on enhancing and expan- ding positions in the growth markets in Eastern Europe and Asia. Carlsberg Breweries will market and position the Carlsberg brand as a leading, international beer brand, complemented by a wide range of strong regional and local brands. This will ensure substantial volumes, an attractive product portfo- lio for the customers and consumers as well as in- creased profitability for Carlsberg Breweries. The global beer market continues to show a mod- Orkla, which owns a 40% stake in Carlsberg Breweries A/S, is one of the largest listed compa- nies in Norway. OrklaGLYPH<213>s core businesses are Bran- ded Consumer Goods, Chemicals and Financial Investments. Orkla is the leading supplier of bran- ded consumer goods to the Nordic grocery mar- ket, holding many number 1 or 2 positions in strategically important product areas. Orkla owns an international chemicals business with strong global positions in selected niche areas of special- ty chemicals, fine chemicals and ingredients. With its strong base of analytical expertise, Orkla is a long-term investor in Nordic stocks and shares. In 2001, Orkla realised an operating income of NOK 45bn and an operating profit of NOK 3.3bn. The group employs a staff of more than 35,000 people.