Prazdroj, the Largest Czech Brewery, to Increase Prices

Plzeňský Prazdroj, the largest brewery in the Czech Republic, will increase the price of most of its products by almost six percent from October 1st. According to Zdeněk Kovář, a Prazdroj spokesman, bottled beer prices will rise by an average of 1.50 CZK per half-liter, while one CZK will raise draft beer prices. The price increase is primarily due to the continuously growing energy, packaging, and transportation costs.

The changes in bottled and draft beer prices affect the Pilsner Urquell, Radegast, Gambrinus, Velkopopovický Kozel, and Birell brands. The company has raised the prices of bottled beer more than draft beer due to the challenging situation in the gastronomy industry.

Prazdroj faces the same problem as other companies that have experienced a continuous increase in input costs, which affected all manufacturing processes last year. “The most significant impact is on energy, but costs are also rising in packaging and logistics. Inputs related directly to hospitality, such as faucet technology, glasses, and other equipment that the brewery provides to pubs free of charge, are also becoming more expensive,” Kovář said.

The increase in price this year, which the brewery implements annually in October, is considered conservative, according to Kovář. “As in previous difficult years, during COVID or last year’s energy crisis, we do not change prices suddenly and take on some of the rising costs ourselves,” he said. The brewery has raised prices to invest in new products and innovations.

Last year, Prazdroj raised most of its product prices by about eight percent, averaging 1.70 CZK per half-liter in October. The changes affected all brands of bottled and draft beer. The brewery attributed the increase to sharply rising costs of energy and packaging.

Prazdroj increased beer sales in the Czech Republic after two years of COVID. It sold 7.3 million hectoliters of beer, almost 12 percent more year-on-year. Sales grew for all major brands, especially for non-alcoholic Birell. Although the company improved by nearly 13 percent in pubs, restaurants, and bars last year, it did not reach the record year of 2019.

Exports increased by almost 13 percent last year, with the brewery exporting nearly two million hectoliters of beer, a record high. The brewery sold 12.4 million hectoliters of beer domestically and internationally last year, compared to 11.1 million hectoliters the year before.

Moreover, Prazdroj opened a fully automated warehouse that requires almost no employees. The company’s new products and innovations will enable it to maintain its position as the largest brewery in the Czech Republic.