Brewers commit to marketing despite cost cuts

Carlsberg and Heineken have committed to driving brand growth through marketing despite both pledging to cut costs this year as the global economic downturn bites.

Both firms have posted increased revenues last year, with Danish brewer Carlsberg, owner of Tuborg and shirt sponsor of Liverpool, registering an increase in net revenue to 59.9bn crowns (£7.13bn) while Dutch group Heineken say revenue increased 27% to €14.3bn (£12.7bn) in 2008.

Despite reporting uplifts in sales last year, both warn of the potential impact of the recession and its impact on beer sales and both commit to cost-control and debt reduction

However, Carlsberg says it “will continue to drive brand growth through focused innovation, marketing support and strong execution” while Heineken notes that it will “ensure the right level of marketing support for key local and international brands, leveraging the fall in media costs.”

Heineken extended its title sponsorship of the European Rugby Cup in December. It also recently appointed Bartle Bogle Hegarty to its £40m global advertising brief.

Carlsberg named Issac Sheps as chief executive last October replacing former UK managing director of brands Doug Clydesdale who left the company after 11 years.

Heineken and Carlsberg completed a joint takeover of the British brewer Scottish & Newcastle last year.

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