Czech Beer Exports In Serious Trouble As Budvar Has Best Export Year Ever
Czech beer exports are in dire trouble according to an article in Hospodarske noviny, the Czech equivalent of the Economist. The piece in the Dec 30 issue of the magazine told readers that the country’s beer exports were “experiencing the biggest crisis in its history” with preliminary figures prepared by the Czech Beer and Malt Association suggesting a 12% decline in 2010.
One brewery is not sharing in the universal gloom however and that is Budweiser Budvar. According to Tony Jennings, CEO of Budvar UK, the brewery has just notched up the best export year in its 116 year history. In 2010 exports were 4% up year on year with export activity accounting for a whisker short of 50% of the brewery’s annual 1,400,00 hl production.
The Budvar growth, says Jennings came mainly from strong growth in its German market (its main export market) and the return of Budvar sales to former high levels in Russia. Given the economic circumstances on the UK market Budvar performed well says Jennings, holding its own. Here the big growth area in 2010 was draught Original Budvar that ended the year 14% up in a sector which is showing a decline.
It’s the Czech beers in the portfolios of the internationals that have taken the hammering says Jennings. “According to the brewers and maltsters association the dismal export performance last year was due to the recession and ‘restriction of consumption’, whatever that means. If a craft lager like Budvar is doing OK, along with a lot of small Czech breweries its has to be proof of what we have been saying for a long time; that the Big Brands are losing out to a new generation of well informed drinkers who want to enjoy the real thing”.
The big brands have been their own worst enemy by trying to be all things to all men, Jennings went on, with the result that their taste has become blander and blander. “It has got so bad that an article appeared in a Czech national paper recently pointing out that once proud brands were not only getting blander but they were converging in taste as well” he says concluding that “For these reasons I don’t think its exaggerating to say that Budvar is the last major authentic Czech beer on the international stage. It’s a great responsibility and we take it very seriously”.
2011-01-05
