Carlsberg Breweries sells German production facilities

01.07.2003: The press release from Carlsberg A/S below is forwarded by Orkla to the Oslo Stock Exchange.

As part of Carlsberg Breweries' strategy of concentrating production in fewer, more effective breweries and focusing its efforts on sales and marketing of its brands, the company is selling the production facilities of its German subsidiary Hannen in Mönchengladbach to the German brewery Oettinger Brauhaus GmbH.
 
Oettinger will assume responsibility for the production and 152 employees, Hannen's contracts for delivering discount beer to supermarket chains, and the filling of bottles and cans for other German breweries. Hannen's other activities - the sale, marketing and distribution of brands, will remain with the company and Hannen's customers will therefore not be affected.
 
The Carlsberg, Tuborg, Hannen Alt and Gatz Altbier brands will continue to be owned and marketed by Carlsberg Breweries, and will be produced at the brewery under Carlsberg's quality control during a transitional period. Production is expected to be moved at a later date to another Carlsberg Breweries production facility.
 
"This is in no way an expression of a wish to leave the German market. With this deal, Carlsberg Breweries can free-up capital and can focus its efforts even more on increasing the sales of its brands. The reduction in capacity increases Carlsberg Breweries' flexibility and ability to take part in the future consolidation in the German market, which is characterized by significant overcapacity," said Carlsberg Breweries President and CEO Nils S. Andersen.
 
Yours faithfully,
Carlsberg A/S