The Economist recently described Beerlao as “probably the most important lager in the world”, echoing Carlsberg’s famous slogan. The newspaper recognised what many visitors to Laos have known for decades: the country’s national beer is far more than just another Asian lager.
For ScandAsia readers, however, Beerlao’s success has an additional dimension. It is also the story of one of the Nordic region’s longest-running and most successful business partnerships in Southeast Asia.
Founded in 1973 as a joint venture between Lao and French interests, Lao Brewery Company has grown into one of Laos’ largest and most successful companies. Beerlao dominates the domestic beer market, while the company has expanded into soft drinks, bottled water and other beverages. Today it is one of the country’s largest taxpayers and employers.
A partnership ScandAsia has followed since 2002
ScandAsia first reported on the Danish connection in August 2002, when Carlsberg became a shareholder in Lao Brewery in a deal that reshaped the country’s brewing industry.
At the time, ownership reflected the complex alliances that characterised Southeast Asia’s brewing industry. The Lao Government retained a 50 percent stake, while Carlsberg acquired 25 percent alongside another 25 percent held by TCC International, part of Thai businessman Charoen Sirivadhanabhakdi’s business empire.
The arrangement is particularly interesting in hindsight. Charoen would later build Chang Beer into Carlsberg’s biggest competitor in Thailand, meaning that, for a brief period, the future rivals were partners in Laos.
The partnership proved temporary. Within a few years, the ownership structure was reorganised into a joint venture between the Lao Government and Carlsberg, and today Carlsberg holds a controlling 61 percent stake in Lao Brewery.
Building a national brand rather than replacing it
One of Carlsberg’s most successful decisions was not to replace Beerlao with one of its own international brands.
Instead, the Danish brewer invested in strengthening Beerlao as Laos’ national beer. Brewed with locally grown jasmine rice combined with European malt and German hops and yeast, Beerlao has earned an international reputation while retaining its distinctly Lao identity.
Over the years, ScandAsia has followed that journey through numerous milestones — from Carlsberg’s first investment and later expansion of its ownership, to the launch of premium beer brands, Tuborg marketing campaigns, brewery developments and the company’s ambition to position Beerlao alongside internationally recognised beers.
Most recently, ScandAsia reported that the Danish-led Lao Brewery Company continued expanding despite Laos’ slowing economy, underlining how Carlsberg’s long-term commitment has made Laos one of the group’s strongest Asian markets. The company today sells more than 100 litres of beverages per person annually in Laos, while Beerlao maintains around 90 percent of the domestic beer market. Laos has also become one of Carlsberg’s most important markets worldwide.
Recognition beyond the beer itself
Beerlao has become a symbol of modern Laos, demonstrating how a local brand can thrive through long-term investment while preserving its national identity. It is also a reminder that successful international partnerships do not always require replacing local traditions with global brands.
Perhaps that is why The Economist found itself echoing Carlsberg’s famous slogan when it described Beerlao as “probably the most important lager in the world.”
For ScandAsia readers, it is simply the latest chapter in a remarkable Danish-Lao success story that we have had the privilege of following for more than twenty years.
