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Plzensky Prazdroj announces its sales results for 2010 (Translation)

18 February 2011

 

Plzeň, February 17, 2011 - Dramatic increases in excise taxes in January 2010, in combination with difficult economic conditions, resulted in a decline of the overall beer market. Plzeňský Prazdroj was no exception to this trend* and its sales, domestically and abroad, declined by 6% in annual comparison. Total sales of Plzeňský Prazdroj on the domestic and international markets reached 9.9 million hectoliters of beer in 2010. On the domestic market, Prazdroj maintained the same market share on an annual basis, with sales of 7 million hl - down by 8% - in line with expectations of the overall market trend*. Exports of Prazdroj's traditional Czech brands grew by 6% to 0.8 million hl despite challenging conditions. Volumes from licensed production were down by 5%, at 2 million hl.

Doug Brodman, Managing Director of Plzeňský Prazdroj, comments on the entire years performance:
"Throughout the entire year, consumers have been facing uncertainty and economic pressures. The 33% excise tax increase on beer in combination with lower disposable income resulted in weakened consumption. Last year sales were also adversely impacted by lower on-trade traffic and the overall soft performance of draught beer in pubs and restaurants, which was further deepened by lower tourism. Despite this, the shares of our super-premium portfolio with the flagship brand Pilsner Urquell grew. On the international markets, we have managed to tackle the adverse situation and grown our exports year-to-year. "

Following a high growth two years ago, the 11-degree segment has continued to enjoy popularity, despite the overall market decline. The ‘elevens' reported a moderate growth of 1%, underpinning the stable trend of premium beers. Mainstream brands sales were down mainly as a result of softening consumer demand in the on-premise channel.

Plzeňský Prazdroj launched a number of novelties last year, such as Master 15° Gold or Birell Semi-Dark. In packaging innovations, the Master special beer range gained much interest and generated a double-digit percentage growth in sales, also thanks to the bottle variants. The malt drink Frisco achieved a high growth in sales as well and the non-alcoholic beer Birell recorded a solid single digit growth. As an attraction for pub and restaurant visitors, the offer of beers on tap has been enhanced by seasonal unfiltered variants of the traditional Czech beers Pilsner Urquell, Gambrinus, and Radegast.

EXPORT
Despite adverse economic conditions, Plzensky Prazdroj managed to increase export by 6%, selling to more than 50 foreign markets. Brand Pilsner Urquell enjoyed popularity on foreign markets, increasing volumes by 5% annually. Velkopopovický Kozel performed well, exporting to about thirty markets, representing an excellent 28% growth for the brand.

FUTURE
In the upcoming year, 2011, Plzensky Prazdroj will develop activities to contribute to the stabilization of the beer market and further development of Czech beer culture.

*Estimate by the Czech Beer and Malt Association

Notes for editors:
- With total sales of 9.9 million hectolitres in the calendar year 2010 (including licensed production abroad) and exports to more than 50 countries around the world, Plzeňský Prazdroj, a.s. is a major beer producer in the region and the largest exporter of Czech beer.
- Plzeňský Prazdroj, a.s. is a member of the group SABMiller plc. Pilsner Urquell is the international flagship of the SABMiller brand portfolio.
- SABMiller plc is one of the world's largest brewers, with brewing interests or distribution agreements in over 60 countries across six continents. The SABMiller brand portfolio consists of international brands such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as almost 200 other successful regional and national brands. Outside the U.S., SABMiller is one of the world's largest producers and distributors of Coca-Cola products.

Contact: Jiří Mareček
External Communication Manager
Tel.: 724 617 219
e-mail: jiri.marecek@pilsner.sabmiller.com

This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.

Note, the news release was first published in its local market on [17/02/2011].

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