Budvar will increase the price of beer by an average of ten percent from 1 November

Budějovický Budvar will increase the price of beer on the Czech market by an average of ten percent from 1 November. Plzeňský Prazdroj, the most significant Czech brewery, will also increase its price as of 1 October.

A pint of Budvar will rise in price by one to two crowns. The reasons are rising energy prices and critical raw materials such as hops and malt, said Budvar’s director Petr Dvořák. The national company’s costs will increase yearly by several hundred million crowns.

Budvar will increase the price of beer in all packages, bottled, kegged, and canned. Energy will cost Budvar more than three times more year on year.

“A three hundred percent increase in the price of electricity is tens of millions for us, the same for the price of cans, bottles, cartons, packaging material, and energy. From next year everything else will get more expensive besides energy and gas,” the director said.

“We expect a more substantial increase in the price of malt, which is our most important item. Reports from the hopyards suggest a disastrous harvest, and although we have long-term three-year contracts, I expect they won’t be filled because the hops aren’t there. At the moment, we don’t have a single entry that I can say won’t be substantially more expensive,” he added. He said that raw materials and packaging have risen in price by more than 10 percent.

Budvar had already made exported beer more expensive earlier this year by five to seven percent. For example, it was more expensive in Germany, where it expected volumes to fall. Abroad is pricing according to how long contracts are in place. It will now charge all customers abroad again. Budvar is also raising prices because it will increase salaries from 1 November, but the director did not say how much. On 1 April this year, wages in Budvar rose by CZK 2,000 across the board, an average of eight percent.

Other Czech breweries are also raising their prices. Plzeňský Prazdroj, the most significant Czech brewery, has made most products more expensive by about eight percent since 1 October, averaging CZK 1.70 per pint. Due to the increase in energy prices, the Primátor brewery in Náchod will also increase its costs. Pivovary Staropramen has become more expensive since 1 September.

Budvar’s sales of products and services rose by 10.8 percent last year to a record CZK 3.11 billion. Profit after tax rose 10.5 percent to CZK 337.1 million. This is according to the annual report in the Collection of Deeds. Budvar brewed a record 1.8 million hectolitres last year, up 4.6 percent yearly.

Beer sales surpassed CZK 3 billion for the first time last year, amounting to CZK 3.02 billion. Budvar exported over 1.3 million hectolitres of beer last year, up 11.3 percent yearly.