Beer in the Czech Republic
Euromonitor International's Beer in the Czech Republic market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 65 | Publication date: Jan 2010
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Dark Beer; Lager; Lager by Origin; Low/Non- Alcohol Beer; Stout
Executive summary
Czech beer is very cultured. Consumers understand the quality, do not look for compromises and demand the rich and traditional taste of beer. In the last two years of the review period, consumers preferred 11-degree and 12-degree beer to 10-degree beer. This trend developed not only through off-trade but also on-trade. Producers were aware of this and so enlarged the offer of stronger lagers. In November 2008, for example, Plzenský Prazdroj launched Gambrinus 11º Excellent. This launch proved to be successful, and from November 2008 until March 2009, 100,000 hectolitres of the product were sold domestically. In June 2009, Budejovicky Budvar np launched Pardal Echt 11º in bottles, and since August 2009, Pardal Echt was also distributed in kegs. This was the first draught 11-degree lager offered by Budejovicky Budvar.
The first non-alcoholic beer, Bavaria, was launched by Al-Namura in 2008. Low/non-alcoholic beer repeatedly represented the most dynamic beer group and exhibited the highest growth in both total current value and total volume sales, with 19% and 18%, respectively, in 2009. The great success of low/non-alcoholic beer was motivated by stricter penalties for driving under alcohol influence. It was also inspired by wider offer (draught low-alcoholic beer began to be offered), and by the improved quality and taste of beer. In 2008, 21 breweries produced low/non-alcoholic beer and offered 23 brands. Breweries that were members of the Union of Czech Breweries and Malt Plants supported campaigns for safe driving without alcohol. The most popular low/non-alcoholic beer continued to be Radegast Birell produced by Plzenský Prazdroj (SAB Miller plc). Nevertheless, it faced competition from regional specialities, such as Bernard Plum and Dark low-alcoholic beer launched in spring 2009 by Rodinny Pivovar Bernard as.
In 2009, there was a slight decrease in beer consumption and the average annual consumption rate dropped to 158.6 litres (from 159 litres) Czechs retained the world leading position in per capita beer consumption. However, a drop in per capita consumption was partly distorted by higher birth rate. Compared to 2008, the drop in sales in 2009 was not so marked, due to the fact that beer remained the most popular drink. In the unstable economic situation, with increased unemployment rate and lower salaries and wages, beer offered alcoholic refreshment for a good price despite its price increasing.
Due to the jump in costs of energy and fuel as well as commodities used to produce beer, all breweries were forced to increase prices during 2008. In 2009, the average price of beer increased also, but at a slower pace. With the unstable economic situation, consumers were increasingly careful about spending and breweries were also careful with the prices they charged.
Domestic standard lager remained the largest category, constituting 50% share of the total volume of beer in 2009. It was followed by domestic premium lager accounting for 21%. Czech beer has its specific tastes and Czech consumers love it. ‘Czech dark beer’ undergoes a different fermentation method, is not classified as dark beer and is grouped under the lager tag. Nevertheless, ‘Czech dark beer’ is promoted as dark beer and Czech consumers perceive it so. Sales of Czech dark beer were small but continued to increase.
Specialty beer and beer produced at microbreweries received increased attention from consumers in 2009. Microbreweries produce beer with unusual ingredients or added aroma and constitute an interesting niche. Their number is increasing. They participate in various local and regional competitions, standing against major brands, and often act as a tourist attraction both for Czechs and foreigners. In 2008, there were approximately 73 microbreweries in the country.
In 2009, there was a slight shift from foodservice consumption to home consumption. The price of beer at consumer foodservice outlets continued to increase and consumers were forced to cut spending due to the rising unemployment rate. The drop in foodservice consumption was 0.4% in 2009, but this was a better performance than in 2008 because beer tastes existed even under economic downturn. In 2009, off-trade sales accounted for 50% of the total volume of beer, marginally higher than in 2007. In volume sales, both channels were similar. In value terms, however, on-trade sales accounted for a larger share. In 2009, on-trade sales accounted for 67% of the total value of beer in the Czech Republic.
The gap between beer distributed in glass bottles and in kegs narrowed in 2009. Although draught beer (distributed in kegs and cisterns) maintained its leading position in 2009, its share declined a little. Beer in cans encountered increased interest among consumers domestically. Beer in PET bottles lost ground but was revived slightly by the introduction of special PET bottles of 1.5 litres in May 2009.
There was a deposit system on glass bottles. A deposit of CZK3.00 per glass bottle of beer was charged at purchase. The deposit was returned when an empty bottle was put back. There were special automatic machines installed at retail chains and at independent grocery outlets where consumers put empty glass bottles in a beer case.
Production, Imports and Exports
According to the Czech Association of Breweries and Malt Plants, the total production of all breweries (48 industrial breweries and approximately 70 microbreweries) reached 19.9 million hectolitres in 2008. This represented a slight decline of 1% on the previous year. Domestic consumption dropped by 1% and reached 16.1 million hectolitres in 2008.
Results for the first half of 2009 indicated a mid-year decrease of 7% in domestic production. During the first half of 2008, domestic production recorded approximately 10 million hectolitres. However, in the first half of 2009, domestic breweries produced approximately nine million hectolitres of beer. The decline was due to bad weather and the outflow of foreign visitors. The second half of the year was better and counterbalanced with hot days at the end of July and in August and extraordinary warm weather in September.
Lager production continued growth at the expense of draught beer. Beer was most commonly barrelled in kegs in the Czech Republic, but the share of bottled and canned beer continued to increase. Beer for export was primarily bottled. The share of 10-degree beer continued to decrease to the benefit of 11-degree and 12-degree lager. Consumption of stronger beer was supported by the wide introduction and promotion of stronger beer by producers. The leading brands were Zlatopramen 11º (Zlatopramen/Heineken), Kozel Medium (Plzenský Prazdroj/SAB Miller) and Gambrinus Excellent 11º (Plzenský Prazdroj/SAB Miller, launched in 2008).
While domestic consumption stagnated, export showed a solid increase. In 2008, the export of Czech beer increased by 3% and recorded approximately four million hectolitres. The largest export markets were traditionally Germany and Slovakia. Other large importers of Czech beer included Russia, Sweden, the US, Austria and Hungary. Czech beer could also be found at exotic destinations, such as Hong Kong, Brazil or Togo. Growth of exports despite stagnation in the EU beer market confirmed the strong position of Czech beer internationally.
The Czech Republic remained the ninth largest exporter of beer in the world. It is predicted by beer market analysts that it will be promoted to seventh position by 2012. In 2009, exports did not reach the numbers of the previous two years. It encountered some drop but not a dramatic fall. Heineken Group, for example, announced that under financial depression it had less demand in Russia, Baltic States and the Ukraine but there was higher export to Sweden.
The import of beer to the Czech Republic declined in 2008 and 2009. Volume share of imported beer in domestic consumption was reported to be only 2%. Czech consumers were conservative and loyal and preferred domestic brands. Czech beer was of an excellent quality. The offer of domestic beer was colourful and Czech consumers had no reason to source other beer tastes. In addition, imported beer was more expensive. Most imports originated in Poland, Austria, Germany and the Netherlands. Most of the imported beer was bottled and canned, although kegs enlarged its share.
Table of contents
BEER IN THE CZECH REPUBLIC : MARKET INSIGHT
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 1 Lager by Price Band 2009
SECTOR DATA
Table 1 Sales of Beer by Subsector: Total Volume 2004-2009
Table 2 Sales of Beer by Subsector: Total Value 2004-2009
Table 3 Sales of Beer by Subsector: % Total Volume Growth 2004-2009
Table 4 Sales of Beer by Subsector: % Total Value Growth 2004-2009
Table 5 Sales of Beer by On-trade vs Off-trade Split: Volume 2004-2009
Table 6 Sales of Beer by On-trade vs Off-trade Split: Value 2004-2009
Table 7 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 8 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 9 Beer: Production, Imports and Exports: Total Volume 2003-2008
Table 10 Beer Exports by Country of Destination: Total Volume 2003-2008
Table 11 Beer Exports by Country of Destination: Total Value 2003-2008
Table 12 Beer Imports by Country of Origin: Total Volume 2003-2008
Table 13 Beer Imports by Country of Origin: Total Value 2003-2008
Table 14 Company Shares of Beer by National Brand Owner 2005-2009
Table 15 Company Shares of Beer by Global Brand Owner 2005-2009
Table 16 Brand Shares of Beer 2006-2009
Table 17 Forecast Sales of Beer by Subsector: Total Volume 2009-2014
Table 18 Forecast Sales of Beer by Subsector: Total Value 2009-2014
Table 19 Forecast Sales of Beer by Subsector: % Total Volume Growth 2009-2014
Table 20 Forecast Sales of Beer by Subsector: % Total Value Growth 2009-2014
LOCAL COMPANY PROFILES - CZECH REPUBLIC
BOHEMIA SEKT AS - ALCOHOLIC DRINKS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bohemia Sekt as : Key Facts
Summary 3 Bohemia Sekt as : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Bohemia Sekt as : Competitive Position 2009
BUDEJOVICKY BUDVAR NP - ALCOHOLIC DRINKS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Budejovicky Budvar np: Key Facts
Summary 6 Budejovicky Budvar np: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Budejovicky Budvar np: Competitive Position 2009
PIVOVARY STAROPRAMEN AS - ALCOHOLIC DRINKS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Pivovary Staropramen as : Key Facts
Summary 9 Pivovary Staropramen as : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Pivovary Staropramen as : Competitive Position 2009
PLZENSKý PRAZDROJ AS - ALCOHOLIC DRINKS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Plzenský Prazdroj as: Key Facts
Summary 12 Plzenský Prazdroj as : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Plzenský Prazdroj as : Competitive Position 2009
STAROBRNO AS - ALCOHOLIC DRINKS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Starobrno as : Key Facts
Summary 15 Starobrno as : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Starobrno as : Competitive Position 2009
STOCK PLZEN - BOžKOV SRO - ALCOHOLIC DRINKS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Stock Plzen - Božkov sro : Key Facts
Summary 18 Stock Plzen - Božkov sro: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Stock Plzen – Božkov sro : Competitive Position 2009
ALCOHOLIC DRINKS IN THE CZECH REPUBLIC
EXECUTIVE SUMMARY
On-trade consumption drops under unstable economic situation
Traditional domestic spirits and stronger beer win while premium products lose
Large companies and groups control alcoholic drinks
Multiple chains take majority of sales
Great expectations for wine, positive outlook for spirits and stagnation for beer
KEY TRENDS AND DEVELOPMENTS
Value sales avoid decline due to rise in prices of spirits and beer
Wine shows the strongest advance – benefiting from health & wellness trend
Low-alcohol beer and higher content Plato beer have green light
Czech consumers return to traditional domestic spirits
Specialist Retailers
Merger and Acquisition Activity
Summary 20 Merger and Acquisition Activity 2008-2009
Summary 21 Speculated Merger and Acquisition Activity 2009-2010
LEGISLATION
TAXATION AND DUTY LEVIES
Table 21 Taxation and Duty Levies on Alcoholic Drinks 2009
Table 22 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2009
Table 23 Selling Margin of a Typical Beer Brand 2009 – Gambrinus 10
Table 24 Selling Margin of a Typical Wine Brand 2009 – Valtice Modry Portugal
Table 25 Selling Margin of a Typical Spirits Brand 2009 – Fernet Stock
Table 26 Number of On-trade Establishments by Type 2004-2008
Table 27 Number of Breweries 2007-2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 28 Retail Consumer Expenditure on Alcoholic Drinks 2004-2009
MARKET DATA
Table 29 Sales of Alcoholic Drinks by Sector: Total Volume 2004-2009
Table 30 Sales of Alcoholic Drinks by Sector: Total Value 2004-2009
Table 31 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2004-2009
Table 32 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2004-2009
Table 33 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2009
Table 34 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2009
Table 35 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2009
Table 36 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2009
Table 37 Company Shares of Alcoholic Drinks by Global Brand Owner 2005-2009
Table 38 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2009
Table 39 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2009
Table 40 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2009-2014
Table 41 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2009-2014
Table 42 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2009-2014
Table 43 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2009-2014
Summary 22 Research Sources
DEFINITIONS
Published data comparisons