Slovak Republic: Topvar brewer plays joker to catch up with competition

The Topolcany brewery used to market its products as original Slovak beer, but today it is also owned by a foreign company – SABMiller, Etrend reported May 6.

The Topolcany brewery used to market its products as original Slovak beer. This was a reference to the foreign owners of the biggest local breweries. But today it is also owned by a foreign company - SABMiller. And the small brewery presents as its main advantage that it brews original beer from Topolcany.

The period from 2002 to 2006 were bad times for the Slovak beer industry as due to higher excise tax and the decreasing thirst of Slovak beer drinkers, the annual production of local breweries fell from around 5 million litres to 3.8. Last year production volumes remained stable and growth is expected.

SABMiller, the company that acquired its first brewery in Slovakia, Pivovar Saris in Eastern Slovakia about ten years ago, was not affected by the overall recession. The annual sales of Pivovar Saris remained at about 1.25 million hectolitres.

Not that traditional Saris brands were not affected, but the company supported them via the traditionally good image of its Czech brands. When SABMiller entered the Slovak market in 1997 it purchased Pivovar Saris from an American with Slovak roots, Rudolf Mosny, as a company producing the best selling Slovak brand. At that time Saris beer had the highest market share in Slovakia – 12%.

Together with Smadny Mnich, another brand produced by the Eastern Slovakian brewery, SABMiller gained control over 14% of the market. Its competitor from Netherlands, another major international beer producer operating in Slovakia, Heineken, was faster as far as acquisitions of Slovak brands were concerned. Apart from Zlaty bazant it gained control over Corgon, Martiner and Gemer. And in addition started to produce a new beer - Kelt.

07 May, 2008