J.C. Jacobsen uses the incident to modernise the brewery yet again. He installs a cooling system that improves product quality and leads to a dramatic increase in sales. Now, Jacobsen's son Carl returns from studying brewing process in Europe. He is invited to brew his own beer in the newly constructed annex brewery. He names his brewery New Carlsberg. The first thing Carl does is to meet market demand by pushing capacity and cutting his father's brewing process in half. In 10 short years, sales at his New Carlsberg surpass that of his father's Old Carlsberg. Carl is selling his beer under the Carlsberg name but much to his father's dissaproval, Carl produces a beer with a shorter storage time. This sparks a family feud between father and son. J.C. Jacobsen, who has his lawyers evict Carl from the Annex and legally attempts to limit his production capacity. He even tries to force Carl to change the name of his brewery. J.C. also wants to keep the label design to himself, but Carl does not cooperate. Father and son eventually reconcile in October 1886, just before J.C. Jacobsen's death.

1904 - Carlsberg pilsner is brewed for the first time

The Danish architect and artist, Thorvald Bindesbøll is commissioned to design the label that will redefine the look of Carlsberg beer forever. During the same year, Carlsberg also becomes the first Danish brewery to receive an appointment to supply beer to the Royal Danish Court. The crown in the Carlsberg label is a testament to this prestigious honor. Carlsberg's natural ingredients are symbolized by the label's hopleaf. For J.C. Jacobsen and son Carl, the look of the Carlsberg estate was also very important.  Both father and son believed that attractive surroundings like art could raise a man's spirit. They wanted to explore new architectural styles for their industrial buildings and strove to create an aesthetic brewery.

Carl Jacobsen wanted to prove that a factory's chimney could be a work of art. He had Carlsberg's famous twisting chimney built in 1900. The star gate at the original entrance bears the symbol of the 12 pointed star. The 12 pointed star is the trademark of old Carlsberg. Carl Jacobsen's elephant tower is perhaps the best-known building on the estate. The elephants symbolise Carl's four surviving children. Jacobsen chose the symbol of the elephant because it represented strength, loyalty and industriousness; the perfect match to his motto Laboremus Pro Patria (let us work for our country).