Kofola Set to Acquire Major Stake in Pivovary CZ Group

Kofola Group, a leading Czech-Slovak soft drinks manufacturer, has received the green light from the Office for the Protection of Competition (ÚOHS) to acquire a majority stake in Pivovary CZ Group. Pivovary CZ Group, a renowned beer manufacturer, is known for its brands Holba, Litovel, and Zubr. This significant acquisition also includes Fontána, a company that sells alcoholic and non-alcoholic beverages in the Czech Republic.

The merger between Kofola and Pivovary CZ Group will not significantly disrupt the economic competition, as confirmed by the ÚOHS. Since December, the Office has been diligently studying the market shares of the merging companies in both the non-alcoholic beverages and beer markets. The study included reviewing the businesses’ sales strategies in both wholesale and direct-to-restaurant sales. The ÚOHS concluded that the merger would not disrupt the economic competition in these markets.

Pivovary CZ Group stands as the fifth-largest brewing group in Czech, with its annual production planned to exceed 800,000 hectoliters last year. More than a third of its production is exported. The company employs almost 500 people in breweries in Hanušovice, Přerov, and Litovel.

Moravská pivovarská, the owner of Pivovary CZ Group, is selling 100% of the shares to Kofola through the company Pivovary Triangl. Founded in November this year, Pivovary Triangl is based in Krnov in Bruntal, and Kofola Czechoslovakia owns 51% of it. Investment group RSJ holds 29%, and Úsovsko holds 20%.

Kofola has previously stated that this new acquisition will allow it to grow in another stable segment with export potential. Despite the specificities of the beer market, Pivovary CZ Group will remain an independently managed pillar of Kofola. After the acquisition, René Musila, one of the founders and the current operational director of the Kofola Group, will take over the breweries.