Carlsberg says consumers in Malaysia and Singapore are drinking less alcohol and increasingly choosing to drink at home instead of in bars and restaurants.
According to Carlsberg Malaysia managing director Stefano Clini, the trend has been growing over the past three years and is expected to continue as inflation affects consumer spending.
The Danish brewer says it is responding by expanding its range of alcohol-free drinks to offer consumers more choice.
Clini also said rising operational costs linked to the conflict involving Iran are affecting the company, although Carlsberg has so far avoided passing the extra costs on to consumers.
