Ambitious global goals for Pilsner Urquell

30.5.2002 Uncategorized

Plzensky Prazdroj, a. s. Group, the Czech
export leader, plans further extensive increase in sales in foreign
markets. The Pilsner Urquell’s aim is to become part of the top 5
international beer brands. The new global advertising campaign worth 10
millions $, which was recently launched in London, should be one of the
tools used in pursuing this goal.

In 2001 the Plzensky Prazdroj, a.s Group exported
687 175 hl of beer (Pilsner Urquell, Gambrinus, Radegast and
Velkopopovicky Kozel brands consolidated), which represent a year-on-year
increase of about 22%. When counting the licensed production, the overall
export was 928 837 hl. The export sales of the SAB flagship – the Pilsner
Urquell brand – were 545 621 hl, a 37% year-on-year increase. Further
increase in export sales is anticipated this year. By the year 2010, the
world consumption of the Pilsner Urquell brand is expected to increase 5
times to more than 5 millions hl.

„The Pilsner Urquell brand gained strong position
in the premium price range, where it still has significant potential for
further growth,“ Tony van Kralingen the CEO of Plzensky Prazdroj, a. s.
comments on the successful export development. Among the 50 Pilsner
Urquell’s export markets, the most important are Germany, USA, Poland,
Slovakia and UK. The new marketing claim of Pilsner Urquell world-wide is
now “The World´s First Golden Beer”.

Additional information:

Countries where Pilsner Urquell is on sale (as of the end of 2001):
Andorra, Argentina, Austria, Australia, Belgium, Belarus, Bosnia and
Herzegovina, Brazil, Bulgaria, Canada, Croatia, Cyprus, Cuba, Denmark,
Estonia, Finland, France, Germany, Great Britain, Greece, Honduras, Hong-Kong,
Hungary, Iceland, Ireland, Italy, Israel, Japan, Kazakhstan, Latvia,
Luxemburg, Macedonia, Mongolia, the Netherlands, Nigeria, Norway, the
Philippines, Poland, Romania, Russia, Singapore, Slovakia, Slovenia, South
Korea, Sweden, Ukraine, United Arab Emirates, USA, Vietnam, Yugoslavia.

Examples from the most important markets:

USA – Pilsner Urquell in all 50 states
The USA is an example of a prestigious market where Pilsner Urquell is
prospering. “Such extensive expansion is the result of the excellent
quality of the product and the honest work of the salesmen in America.
Their success is possible thanks to the technical support provided to them
by experienced experts from the parent company Plzeòský Prazdroj,” said
Tony van Kralingen, the CEO of Plzensky Prazdroj, a. s
., commenting on
the position in the American market.

Pilsner Urquell is sold in all fifty states of
the USA. Last year the new twelve-bottle pack was very successful. Sales
are supported by regional promotion activities and advertising in
magazines and on billboards. The campaigns focus on a global target group
– young, successful and educated people between 25 and 40 years of age.
Pilsner Urquell belongs to the premium beer category, which is reflected
in the fact that the price is 5% higher than e.g. Heineken, i.e. $7.49 for
355ml 6-pack.

Distribution and marketing are the responsibility
of the daughter company Pilsner Urquell USA Inc. The administration is
minimal; out of 50 people in the company 42 are salesmen working in all
the important territories such as New York, Chicago or San Francisco.

Germany: Pilsner Urquell – the only premium
brand of imported beers which is enjoying growth

Germany was together with the USA by far the largest export market of
Plzensky Prazdroj, a.s. last year. Given the strong competition governing
the German market, it is even more significant that in 2001 Pilsner
Urquell was the only premium brand of imported beers that witnessed a
substantial growth in Germany.

Plzensky Prazdroj sold 56 thousand hectolitres of
beer in Germany in 1995. A turn for the better came with the foundation of
the import and distribution daughter company Pilsner Urquell International
Distributing GmbH (PUID), with its registered office in Kerpen near
Cologne, the birthplace of the Formula 1 racers, the Schumacher brothers.
Since then the export of the brand Pilsner Urquell to Germany has grown
steadily and dynamically, last year by 24 %. “Germans look for quality and
Pilsner Urquell has a justified success here, though its price exceeds the
local premium brands by 30 percent,” says Tony van Kralingen, the CEO
of Plzensky Prazdroj, a. s
., explaining the results of the Pilsen beer
in the German market and describing the plans for this year: “This year we
plan an attack on further substantial increases in exports, although the
consumption of beer in Germany has been on decline in the long term.”

With an expanded thirteen-member team the PUID
cooperates particularly with large distributors and retail chains. The
promotion activities are targeted at young, successful and educated
consumers. The strongest territories for the sale of the Pilsner Urquell
beer are Saxony, Thuringia, Hamburg and North Rhineland-Westphalia.

Poland – a great change for world breweries
One of the fastest developing beer markets in the world is Poland. At a
time when the consumption of beer has a general tendency to stagnate, in
Poland it is growing dynamically. The year-on-year growth between 6 and 14
percent helped our northern neighbour to achieve 5th position in Europe
behind Germany, Great Britain, Russia and Spain, over a short period of

The fact that beer is doing well in Poland is
confirmed by the generally growing consumption as well as by the ever
greater influx of foreign beers into the country. One of the most
successful brands is Pilsner Urquell, achieving annual growth of dozens of
percent. With the market share of 20 %, Pilsner Urquell is on the first
position among the imported premium brands.

The success of Plzensky Prazdroj in the Polish
market has been helped by the fact that the brand Pilsner Urquell is
included in the portfolio of the brewing company Kompania Piwowarska, one
of the largest on the Polish market. Kompania Piwowarska, like Plzeòský
Prazdroj, is a member of the SAB group and due to growing sales it is
catching up with the hitherto leader of the Polish market – the Heineken

The new global advertising campaign

Pilsner Urquell – The World’s First Golden Beer

The first advertising campaign promoting the
Pilsner Urquell brand globally was recently launched in London. The
account worth 10 millions $ was handled by the Leagas Delaney agency.

The campaign is build upon an idea of the Pilsner
Urquell invention being an inspiration for other inventions. Inventions
that are to protect the breaking-through beer of Pilsen, spread it around
the world and help people to better enjoy The World’s First Golden Beer.

There are some examples of communication lines:
Refrigerator was invented in 1844, in order to appreciate better
The World’s First Golden Beer. Other major invention of the year 1844, the
telegram, was invented in order to spread the word of The World’s
First Golden Beer. Burglar alarm was invented in 1858, in order to
protect The World’s First Golden Beer.

The major export markets – Germany, Poland,
Sweden, UK, USA and Canada – will thus for the first time experience the
TV spots and prints promoting the Czech beer brand.