Prazdroj’s growth driven by its successful support of the on-premise channel and the rising popularity of lagers, non-alcoholic beer and ciders

29.3.2018 Company

Plzeňský Prazdroj has reported another strong year. In the local market, the company sold just short of 7 million hectolitres of beer, surpassing its results of the previous year. Prazdroj’s success is largely due to the focus on its premium portfolio, mainly lagers, led by the premium Pilsner Urquell, which grew 7.6 percent on the previous period.

Last year (1 January – 31 December 2017), Plzeňský Prazdroj did well in both the On and Off Trade. Compared to its competitors, the company saw a much smaller decline in sales of draught beer in the Czech Republic, namely 3 percent, while sales of premium brands on tap grew at the same time. In the Off-Trade, sales went up 2.3 percent.

More than ever, last year was characterized by Plzeňský Prazdroj’s intensive efforts to promote and grow the unique Czech beer culture, with the company providing support to pub owners, who are dealing with regulatory changes that are affecting this segment. Not only does Prazdroj provide staff training to its On-Trade customers, it also offers them consultancy in legal, economic and marketing aspects of doing business. Prazdroj works with its customers to enhance both the indoor and outdoor environment of their pubs and restaurants, with ‘beer gardens’ helping mitigate the impact of the smoking ban, especially in winter. These efforts are paying off in the form of stronger ties and cooperation with its on-premise customers. “Last year, we put a lot of work into supporting concept pubs and tank pubs, which offer consumers beer at its best quality, tasting the same as the beer still in the brewery. And of course, we support high-quality gastronomy and an attractive environment. All these things help create the unique experience of the perfect pour, thanks to which consumers want to return. Last year, we opened the 850th tank outlet and total sales of beer in tank grew by 2 percent,” summarized Plzeňský Prazdroj’s Sales Director, Tomáš Mráz.

In addition to the strong performance of Pilsner Urquell, last year’s growth in domestic sales is to be credited to the Radegast brand, whose sales went up 3.75 percent, thanks to the increasing popularity of lagers as well as the successful launch of Radegast Rázná 10 (ten-degree beer).

Great results were delivered in the cider category last year, with sales of Kingswood and Frisco growing by almost one-fifth year on year (up 18.1 percent). Prazdroj has therefore successfully re-positioned and re-launched Frisco as a cider. “Ciders continue to be one of the fastest-growing beverage categories,” Tomáš Mráz added.

On the rise are also fine-quality non-alcoholic beers, with the Birell brand delivering a year-on-year growth of 15 percent, mainly driven by its flavoured variants. In addition to the existing four different flavoured Birells, Prazdroj launched an innovative new line last year: Birell Botanicals, which has been doing great from the outset. Consumers also like the new Birell Green Barley. The changing lifestyles of many consumers are reflected in sales of Birell growing, not only in its main, summer peak but throughout the year.

This year again, Prazdroj will continue to support premium brands and the unique local beer culture. “Aiming to sustain our success, we will continue to focus on enhancing the quality standards in the On Trade in all aspects, including the interior equipment, range of offerings, professionalism of the staff, and naturally, the most important thing, which is to ensure that consumers get first-class beer on tap,” said Plzeňský Prazdroj’s Managing Director, Grant Liversage, adding that “Good-quality draught beer enjoys a truly unique position within the Czech culture and our role is to preserve this tradition.”

Plzeňský Prazdroj’s spokesperson, Jitka Němečková, is available to the media on the following contacts:
Mobile phone: 731 193 191 

Notes for editors
With exports to more than 50 countries around the world, Plzensky Prazdroj is a major beer producer in the region and the largest exporter of Czech beer.
For its long-term contribution to promoting corporate social responsibility in the Czech Republic, Plzeňský Prazdroj was awarded the Gold Certificate in the 2017 TOP Responsible Company competition.