The Kofola Group, a prominent soft drinks manufacturer in the Czech Republic and Slovakia, has secured approval from the Office for the Protection of Competition (ÚOHS) for its proposed acquisition of a majority stake in Pivovary CZ Group. Pivovary CZ Group, renowned for its beer brands Holba, Litovel, and Zubr, along with Fontána, a distributor of alcoholic and non-alcoholic beverages in the Czech Republic, represents a significant addition to Kofola’s portfolio.

The ÚOHS, following a thorough examination of market dynamics, including sales strategies and market shares in the non-alcoholic beverages and beer sectors, has determined that the merger will not substantially disrupt economic competition. This decision comes after months of scrutiny since December, ensuring the consolidation does not hinder market competition.

Pivovary CZ Group, ranking as the fifth-largest brewing group in the Czech Republic, boasts an annual production exceeding 800,000 hectoliters, with a substantial portion earmarked for export. Employing nearly 500 individuals across breweries in Hanušovice, Přerov, and Litovel, the group holds a significant position in the beer market.

The acquisition entails the purchase of 100% of Pivovary CZ Group’s shares by Kofola through its subsidiary, Pivovary Triangl. Established in November, Pivovary Triangl, headquartered in Krnov, is majority-owned by Kofola Czechoslovakia, with 51% ownership, while investment groups RSJ and Úsovsko hold 29% and 20%, respectively.

Kofola views this acquisition as an opportunity to expand into a stable segment with export potential. Despite entering the beer market, Pivovary CZ Group will retain its autonomy within Kofola’s structure. Following the acquisition, René Musila, a founding member and current operational director of the Kofola Group, is set to assume leadership of the breweries.

The approval from the competition authority marks a significant milestone for Kofola Group’s strategic expansion efforts, positioning the company to capitalize on synergies and strengthen its presence in the beverage industry while maintaining healthy market competition.

Article by Prague Forum