E-Malt.com News article: The Czech Republic: Czech President against privatisation of Budejovicky Budvar

Czech President Milos Zeman is against the potential privatisation of brewery Budejovicky Budvar as it might lead to deterioration of quality of its beer, Zeman said upon the start of his three-day visit to the Jihocesky region, southern Bohemia, on February 17.

The potential privatisation of Budvar would actually mean that Budejovicky Budvar will be seized over by Anheuser-Busch InBev, Zeman said.

"Budvar is the only national company in the territory of the Czech Republic and this measure was adopted in order to prevent privatisation by American concern Anheuser Busch," Zeman said.

Anheuser-Busch became part of the Anheuser Busch InBev concern in 2008.

If Budejovicky Budvar was really taken over be the Anheuser Busch group, the quality of its products would change markedly, according to Zeman.

The potential privatisation of Budvar would also have a negative impact on other industries. "It would weaken our traditional hop growing," Zeman added.

The portfolio of the Anheuser-Busch InBev concern comprises about 200 brands from all over the world, including the Budweiser brand.

Lawsuits over Budweiser with Anheuser-Busch InBev have been dragging since 1907. In 2000-2012, 173 court disputes and administrative proceedings were closed. Budejovicky Budvar won 120 cases and ten disputes ended in a settlement or in a draw.

The registration of trademarks Budweiser and Budweiser Budvar, owned by Budejovicky Budvar, bans the Anheuser-busch InBev concern from using its flagship trademark Budweiser in almost 70 countries.

Budejovicky Budvar brewed 1,424 million hectolitres of beer last year, which is 6.2 percent more on the year and a record amount in its 118-year-long history.

Its exports reached a record of 763,000 hl of beer, up by 106,000 year-on-year, and headed to 65 countries.

Budejovicky Budvar's sales last year grew by Kc94 mln to an all-time high of Kc2.223 bln.


19 February, 2014