The Czech Republic: Budweiser Budvar invests in new can filling line to meet growing at-home consumption trend

Budweiser Budvar says it chose to invest in a new KHS can filling line following a recent shift in the nation’s beer market towards at-home beer consumption, BeverageDaily.com reported on February 10.

In 2013 around 40% of beer sold in the country was consumed in restaurants and bars, the beer brand says, compared with 50% in 2005, with keg, tank, vat and barrel sales declining.

Budweiser Budvar is the No.4 brand in the Czech Republic behind Pilsner Urquell, Staropramen and Heineken – native industry average sales rose 1.5% in 2012, but the brand recorded 2% growth.

According to a recent case study released by KHS, sales of Budweiser Budvar in PET and glass bottles now account for 70% of brand sales at home, followed by 25% in kegs, tanks, vats and barrels and the remaining 5% in cans, a figure that is rising.

“To date we had our cans filled under license. However, as there’s been a distinct growth in the sale of canned beer, it’s now worth investing in our own canning line. Even if our can sales should stagnate, it’s still profitable,” Adam Brož, master brewer and director of production and technology at Budweiser Budvar said.

The Czech brewer recently installed a new canning line from German supplier KHS (it already runs three glass lines made by the company and one keg line) with an output of up to 21,000 cans (330ml, 440ml, 500ml) per hour.

Citing increasing demand for Budweiser Budvar both in the Czech Republic and in 58 export countries, Brož said constant line operation was crucial.

14 February, 2014