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This case study describes the operational challenges faced by Carlsberg Malawi Ltd. (CML), a beverages company operating in Malawi through three subsidiaries: Southern Bottlers Malawi Limited, Carlsberg Malawi Brewery Limited, and Malawi Distilleries Limited.

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  • Foreign exchange shortages in Malawi represent the most significant constraint to CML's business activities, hindering the financing of imported inputs. This led to production struggles in early 2012 and forced Southern Bottlers Ltd. to compromise branding by using gold crown lids instead of the standard red ones for Coca-Cola bottles, as they could not access the necessary inputs to meet international standards.
  • CML faces significant challenges regarding fair competition and corruption. The company reports that competitors avoid paying import duties, allowing them to flood the market with spirits in sachets priced at MK 10, compared to CML's price of MK 30 to MK 35. To combat internal corruption, theft, and fraud—which have previously resulted in costly court cases—CML implemented a zero-tolerance agenda that reduces employee bonus pools based on losses from corrupt practices and provides an anonymous reporting mechanism.
  • Domestic skill shortages, particularly for chemical engineers and operators aligned with Carlsberg methods, force the company to rely on in-house training or training in Europe. The company's internal training program costs approximately MK100 million annually.
  • Poor transport infrastructure in Malawi increases costs and limits export growth. CML supports the rehabilitation of the railway network connecting to Mozambique by Central East African Railways, as improved rail access would decrease import costs and make exporting more cost-effective.

Cite the original document

APA
South African Institute of International Affairs (2013). Carlsberg Malawi Ltd. (CML). https://saiia.org.za/saiia-toolkit/carlsberg-malawi-ltd-cml/
Chicago
South African Institute of International Affairs. Carlsberg Malawi Ltd. (CML). 2013. https://saiia.org.za/saiia-toolkit/carlsberg-malawi-ltd-cml/.
Wikipedia
{{cite report |author=South African Institute of International Affairs |title=Carlsberg Malawi Ltd. (CML) |date=25 February 2013 |url=https://saiia.org.za/saiia-toolkit/carlsberg-malawi-ltd-cml/ |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{southafricaninstituteofinternationalaffairs2013carlsberg, author = {{South African Institute of International Affairs}}, title = {{Carlsberg Malawi Ltd. (CML)}}, institution = {South African Institute of International Affairs}, year = {2013}, month = feb, url = {https://saiia.org.za/saiia-toolkit/carlsberg-malawi-ltd-cml/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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