Kofola, a prominent beverage manufacturer, is diversifying its portfolio by entering the beer market through the acquisition of a majority stake in the Pivovary CZ Group. The Pivovary CZ Group is renowned for producing well-established beer brands like Holba, Zubr, and Litovel. This strategic move marks Kofola’s expansion beyond its traditional focus on non-alcoholic beverages.

While the financial terms of the transaction have not been disclosed, the deal is subject to approval from the Office for the Protection of Competition (ÚOHS). In response to this significant development, Kofola has requested the suspension of trading with its shares on the Prague Stock Exchange.

Jannis Samaras, General Manager of Kofola, expressed confidence in the company’s ability to nurture traditional and local beer brands with compelling stories. The acquisition provides Kofola with an opportunity to invest in breweries that boast rich histories, genuine craftsmanship, and modern production facilities. Samaras believes that Kofola’s experience can play a vital role in the further development of these brands.

Jaromír Dvorský, Deputy Chairman of the Board of Pivovary CZ Group, highlighted the importance of preserving the craft tradition of brewing beer and maintaining strong relationships with various stakeholders. These factors were pivotal during the sale negotiations, and Dvorský expressed satisfaction in finding a partner in Kofola who shares their commitment to maintaining beer quality and supporting commercial expansion.

Kofola, a key player in Central Europe, operates 11 production plants and is known for a range of brands, including Rajec, Korunní, and Ondrášovka mineral waters, Jupík, Ugo, Royal Crown Cola sweet drinks, and the Semtex energy drink, along with its eponymous product.

Pivovary CZ Group stands as the fifth-largest brewing group in the Czech Republic, employing nearly 500 people in breweries located in Hanušovice, Přerov, and Litovel. With a brewing legacy of over 130 years, the group produces iconic beers such as Holba, Zubr, and Litovel. The newly formed company, Pivovary Triangl, will be majority-owned by Kofola ČeskoSlovensko (51%), with investment group RSJ holding 29%, and Úsovsko owning 20%.

Article by Prague Forum