KUALA LUMPUR, Aug 13 — Carlsberg Brewery Malaysia Bhd plans a modest price increase on beer starting September 1, 2025 in a move it said was aimed at protecting profit margins amid rising costs and weak demand, as sales volume is expected to remain flat this year.

The price adjustment will only apply to the Malaysian market, according to a report published in The Edge.

The company’s managing director Stefano Clini said the increase would be in the single digits and noted the announcement was unusual, as the company rarely discloses pricing details publicly.

“Our objective is to protect our margin. We’re not aiming to expand them, but we are committed to ensuring they’re not eroded,” Clini said during a media briefing.

He pointed out that the absence of early stockpiling ahead of Chinese New Year and weaker festive demand could put a dent in annual sales volume by 3 to 4 per cent.

The prike hike may lead to a short-term drop in consumption lasting two to three months, Clini warned, but it is too early to assess the long-term impact.

Despite investing hundreds of millions in infrastructure upgrades, the company has managed to keep production costs stable, a rare achievement according to Clini. 

“That’s more than what most companies would achieve — typically, you’d expect costs to rise after such investment,” he said.

He said that weak consumer sentiment, inflation, and global uncertainties continue to weigh on spending.

Meanwhile in Singapore, Carlsberg faces intense price competition, described by Clini as “value-destructive.” 

He said the company had to respond to maintain market share but does not expect growth there this year. 

A recovery is hoped for in 2026 if market conditions stabilise.

Carlsberg Malaysia’s corporate affairs director Pearl Lai addressed potential “pro-health” taxes under Malaysia’s 13th Plan, which could target alcohol, tobacco, and vaping products, and warned that higher taxes might drive consumers toward illegal products, which do not generate tax revenue.

Lai said that Malaysia already has some of the world’s highest alcohol taxes, with the last increase in 2016. 

The company is engaging regulators to advocate for stable tax policies.

Shares in Carlsberg Malaysia closed two sen higher at RM17.28 on Tuesday, valuing the group at RM5.28 billion. 

The stock has fallen 16.4 per cent year-to-date.