Czech Republic: SABMiller-owned Plzensky Prazdroj intends to invest CZK 1 billion per year

The largest Czech brewery Plzensky Prazdroj, owned by SABMiller, plans to invest almost CZK 1 billion a year to expand its facility in Plzen, western Bohemia, CTK learned November 24 from the plant's manager Jaroslav Gubis.

Prazdroj is getting ready for markedly higher demand for its premium lager Pilsner Urquell, SABMiller's prime brand.

"This beer has immense potential," Gubis said. At present, the company has the capacity to produce almost two million hectolitres of Pilsner Urquell a year.

The Czech market, to which Prazdroj sold 1.2 million hectolitres of Pilsner Urquell last year, still has a moderate potential for growth.

"But everything depends on exports," said Gubis. Prazdroj expects to raise exports above all to Britain, Germany and the US.

The managers expect to raise weekly output of all brands to 158,000 hectolitres from the current 120,000 hectolitres.

"We must launch this expansion now to have the beer on the market in the 2008-2009 season, and we must also secure a gradual increase in capacities within the five-year plan," said Gubis.

In 2005, the company sold 8 million hectolitres of beer in the Czech Republic and raised exports by 29 percent to 2.2 million hectolitres.

In the financial year from April 2005 to March 2006, Prazdroj made net profit worth almost CZK 3.4 billion on CZK 13.55 billion in sales.

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