A recent documentary film “Cambodian Beer Dreams” is raising questions about how beer companies are operating in Cambodia. At Carlsberg, we acknowledge that we have a responsibility to continue to drive and promote responsible practices in the right direction. Here is what we have done in recent years.

First, some overall facts about our presence in Cambodia. Carlsberg gained full control of our local Cambodian brewery Cambrew in 2019. Today, we are the sixth largest brewery in Cambodia with a market share well below 10 per cent. However, although we are a small player in the market, our commitment to responsible business practices remains high. In recent years, Carlsberg has taken many proactive steps to ensure ethical operations and drive positive change, both for consumers and employees.

A total stop of using “under-the-lid” prize promotions to drive sales

In 2022, Carlsberg was the first and only brewer to make a decisive move by stopping “under-the-lid” prize promotions in Cambodia – locally known as Ring-Pull promotions – providing instant rewards hidden beneath bottle caps or aluminum can tabs. Awards could range from complimentary free beers to high-value prizes such as cars or substantial cash rewards.

These practices create a behavioral loop in which individuals purchase and consume beyond natural demand and may lead to inappropriate behaviour among consumers.

Carlsberg continues to advocate for a national ban on such practices for the beverages industry, and advocate for regulation to prevent excessive price discounts and substitute practices.

Together with other industry stakeholders, we have also called on authorities to introduce an official legal purchase age for alcohol, reinforcing our stance on promoting safe consumption habits.

Protecting employees - a top priority

Ensuring the safety, dignity, and wellbeing of our people is at the core of our operations. In recent years, Carlsberg has rolled out comprehensive measures to improve working conditions for our brand promoters in Cambodia. These initiatives include offering higher wages, annual merit increases, parental leave, enhanced safety and security training, harassment prevention, and better mechanisms for reporting incidents of harassment or abuse and offering legal assistance where needed.

We stand firm on our employees’ working conditions and more recently, we have significantly reduced the use of brand promoters focusing on geographical areas where we have better oversight of our people to foster a safer, more supportive work environment.

In collaboration with other international beer companies, we seek to establish common standards for brand promoters across the Cambodian market.

The right to unionize for our employees is a fundamental right – and we do not accept any attempt to stop employees from joining a union. If we become aware of such behaviour, it will have serious consequences and potentially lead to dismissal from Carlsberg.

Promoting responsible marketing and alcohol consumption

Carlsberg’s marketing policies, which also apply to the Cambodian market, are designed to encourage responsible drinking and avoidance of appeal to minors.

Across markets where we are present, we only promote our brands to people above the Legal Drinking Age (LDA) as stipulated in national or regional law. And in cases where no such legal drinking age has been established yet, such as in Cambodia, we still do not promote alcohol towards those below the age of 18. People at the age of 18 and above are legally referred to as adults in Cambodia.During recent years, we have also initiated a responsible drinking campaign in Cambodia, both on-ground and online, to raise awareness of alcohol consumption and moderate drinking.

No tolerance of corruption

We have a constructive and ongoing dialogue with relevant authorities in Cambodia, and we pay the taxes required by law. We have a zero tolerance towards any corruption, and we would never offer payments or free beers towards government officials to gain competitive advantages. This goes against our Code of Ethics and Conduct at Carlsberg Group. We say this as we are aware that allegations on corruptive practices are being mentioned in the documentary, however this is not linked to Carlsberg in Cambodia.

Driving industry-wide change

While Carlsberg continues to strive for improvement, we also acknowledge that there are challenges in the Cambodian beer market. We can always become better and will constantly improve the way we conduct our business. At the same time, we need national regulation. We have been vocal about this in our engagements with government officials on various occasions and formats for several years, such as in courtesy meetings, public-private sector dialogues, business chambers, and coalitions within the industry. We believe that by remaining in the Cambodian beer market, we can positively impact the entire beer industry towards greater accountability and consumer protection and supporting further development of the economy in Cambodia.

Ultimately, our commitment to responsible business is unwavering. We believe that even as a small player, Carlsberg can make a meaningful impact - helping to shape a more regulated, ethical, and responsible beer market in Cambodia.