Czech Republic: Kc700m state subsidy for Plzensky Prazdroj criticised by small brewers

The daily Lidove noviny LN comments on nearly a Kc700m state subsidy to boost exports of Plzensky Prazdroj, a member of the group SABMiller plc, which is criticised by small Czech brewers, CTK reported May 31.

Beer is one of the best exports and it deserves state support, but the government should mainly invest in Czech breweries, a commentator says.

Small breweries may complain but Prazdroj, and possibly Budvar which, however, is not among those criticising the state support, is much popular abroad and support to less-known local brands simply does not pay off. Prazdroj certainly contributes much more to the budget than the small brewers.

Moreover, the leader on the Czech beer market has pledged to invest Kc1.5bn from its own funds to a new racking room which will create new jobs.

Small brewers lack such funds, and the state does not profit from them as it does from Prazdroj, the paper said.

Still, however, the criticism is legitimate. How the small breweries can compete with the giant if they are put a spoke in their wheels by the state, asks the commentator.

It is the state that should primarily take care of smaller Czech brewers. Prazdroj is owned by the international group SAB-Miller which can afford to pay such amounts of money from its own pocket, LN said.