Plzeňský Prazdroj to Raise Beer Prices by Nearly Six Percent From October 1st

Plzeňský Prazdroj, the largest brewery in the Czech Republic, will increase the prices of most of its products by almost six percent starting October 1st. The price hike will affect brands such as Pilsner Urquell, Radegast, Gambrinus, Velkopopovický Kozel, and Birell.

According to Zdeněk Kovář, a spokesman for Prazdroj, bottled beer prices will rise by an average of 1.50 CZK per half-liter, while draft beer prices will increase by one CZK. This price adjustment is primarily attributed to the continuously rising energy, packaging, and transportation costs. Kovář noted that the brewery faces challenges similar to other companies dealing with increasing input costs across various aspects of production.

The brewery has raised bottled beer prices more than draft beer due to the challenging situation in the gastronomy industry. Kovář emphasized that the price increase this year is considered conservative, as the brewery has a history of taking on some of the rising costs itself, especially during challenging economic periods. These price adjustments are made annually in October and allow the brewery to invest in new products and innovations.

Last year, Prazdroj raised prices on most of its products by approximately eight percent, equivalent to an average increase of 1.70 CZK per half-liter in October. The decision was influenced by the sharp increases in energy and packaging costs.

Despite the challenges posed by the COVID-19 pandemic, Prazdroj managed to increase beer sales in the Czech Republic last year after two years of decline. The brewery sold 7.3 million hectoliters of beer, marking an almost 12 percent year-on-year increase. Sales growth was observed across all major brands, particularly for the non-alcoholic Birell. While the company improved sales in pubs, restaurants, and bars by nearly 13 percent last year, it did not reach the record levels achieved in 2019.

Prazdroj also experienced growth in exports, with an almost 13 percent increase in exports in the same year, reaching nearly two million hectoliters of beer, a record high for the brewery. In total, Prazdroj sold 12.4 million hectoliters of beer domestically and internationally last year, compared to 11.1 million hectoliters the previous year.

The brewery’s commitment to innovation and investment in new products, along with the implementation of a fully automated warehouse, positions it to maintain its status as the largest brewery in the Czech Republic.

Article by Prague Forum

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