THE LARGEST PURELY CZECH BREWERY MAINTAINS ITS DYNAMIC PROGRESS
THE THIRD LARGEST BREWING COMPANY IN THE CZECH REPUBLIC CONTINUES ITS OUTPUT
 Ceske Budejovice, 25.1.2000 |
Last year Budweiser Budvar n.c. showed total beer sales of 1.826 billion crowns which represents a growth of 9 % in comparison with 1998.The total quantity of brewing in 1999 was 1.258 million hectolitres, 7.6 % up on the previous year. Budweiser Budvar also last year became the third largest brewery in the Czech Republic in terms of total amount of beer brewed. As a result of the merger between Plzensky Prazdroj and Radegast the most successful South Bohemian brewery - Budweiser Budvar - also became the third largest brewery group in the Czech Republic. Thanks in the main part to the further expansion of its own distribution network in the Czech Republic Budweiser Budvar's domestic sales went up by 20 % compared to 1998.
| DOMESTIC |
Budweiser Budvar is not changing its strategy of producing typical Czech beer using traditional technological methods and the very best and exclusively Czech raw ingredients while at the same time maintaining its three levels of quality control. The mainstay of the Budweiser brewery is the 12 degree Budweiser Budvar premium lager which at the end of the year was awarded the title "beer of the year" in the consumer competition organised by the magazine Beer Courier.
Despite the fact that there has been an overall drop of 7 % in the quantity of lager produced domestically in 1999 compared with 1998 Budweiser Budvar premium lager has strengthened its position on the Czech market and sales continue to grow. Budweiser Budvar premium lager's share of the lager market in the Czech Republic went up in 1999 to 8.4 % compared to 6.8 % in 1998. Budweiser Budvar's overall share of the domestic beer market increased from 3.72 % in 1998 to 4.56 % in 1999.
| EXPORT |
Budweiser Budvar's share of the total beer exports increased in 1999 to 34 %. Despite a drop of almost 21 % in the export of Czech lagers compared with the previous year Budweiser Budvar was able to increase its share of the overall export of lagers from the Czech Republic to 39 %. So the Budweiser Budvar brewery continues to maintain its position as the number one Czech beer exporter with a large lead over its rivals.
Despite an initial fall in January and February last year when the deficit in the export of Budweiser Budvar reached fifteen percent compared to the same months the previous year, the brewery managed over the course of the year to reduce its loss to an overall figure of 7 % in comparison with export in 1998.
 The most important foreign markets |
| Country |
99/98 Index |
| Germany |
- 6 % |
| Austria |
+ 8 % |
| Slovakia |
- 9 % |
| Italy |
0 % |
| France |
+ 62 % |
| Russia |
- 70 % |
In 1999 Budweiser Budvar exported its beer to 56 countries throughout the world and thanks to its wide portfolio of foreign markets Budweiser Budvar successfully managed to compensate for the drop in certain markets which were caused by external influences (for example, in Russia).
| INVESTMENT IN 1999 |
 |
Budweiser Budvar's most significant investments in 1999 were directed primarily to the development of its own business activities. In the last two newly completed commercial centres in Prague and Teplice alone Budweiser Budvar invested 80 million CZK, in the renewal of the vehicle fleet 18 million CZK, and in the modernisation of bottling technology a further 5.5.million CZK. As part of the anticipated expansion of the brewery Budweiser Budvar has invested in the purchase of real estate next to its current operation. In 1999 the brewery invested a total of 220 million CZK.
| Trading income in 1999 in comparison with 1998 |
| Indicator |
Unit |
Total for 1998 |
Total for 1999 |
99/98 Index (%) |
| Total quantity of brewing |
hl |
1,169,000 |
1,258,000 |
107,6 |
| of which export |
hl |
532,000 |
491,000 |
92,3 |
| of which domestic |
hl |
637,000 |
767,000 |
120,4 |
| Total beer sales |
thousand CZK |
1,676,000 |
1,827,000 |
109,0 |
| Total revenue |
thousand CZK |
2,221,000 |
2,392,000 |
107,7 |
| Gross profit before tax |
thousand CZK |
409,000 |
478,000 |
116,9 |
| BUDWEISER BUDVAR IN THE YEAR 2000 |
"Last year's positive trading result will be used primarily as reinvestment into business activities, but not only in the Czech Republic but also abroad. In the year 2000 we are expecting a more favourable situation in the beer market both at home and abroad. The total brewing plan for next year is 1,373,000 hl (850,000 hl domestic, 523,000 hl export), total beer sales of 2,226,000 CZK are deduced from this plan. From our plan it is clear that also in the year 2000 we will be placing the emphasis primarily on the development of our business activities at home and abroad. The key element of our domestic business strategy remains the development of our distribution network through our own commercial centres", said Jiri Bocek, director of the brewery.
Recently three new commercial centres started up - in Prague, Brno and Teplice. On 17th January the Prague commercial centre moved to its new, and up until now, largest premises which thanks to their prime location by the D1 motorway provide a significant position for Budweiser Budvar on the market. Also the new commercial centre in Teplice began test operation in new premises on 25th January. At the beginning of February a new commercial centre will be opened in Brno in premises which have previously been rented.
| INVESTMENT IN THE YEAR 2000 |
Budweiser Budvar's total investment plan for the year 2000 amounts to 200 million CZK. The brewery has earmarked 11 million CZK for the completion of the existing centres and 130 million CZK for the construction of a further two commercial centres in Brno and Pardubice. The total investment in the expansion and modernisation of the vehicle fleet in the year 2000 will be around 28 million CZK. Further significant finances are intended for the purchase of a new control and classification system for two bottling lines in the bottling room which will provide more efficient bottle identification and will automatically differentiate returnable and non-returnable 0,33 l bottles. |
