E-Malt.com News article: The Czech Republic: Brewer Pivovary Lobkowicz Group plans to list on the Czech bourse

Czech beer drinkers have voracious thirst and may soon be able to profit from their traditional habit if a local craft brewer follows through with its newly floated plans to list its stock on the country’s bourse, The Wall Street Journal reported on December 12.

Pivovary Lobkowicz Group AS, which owns seven breweries throughout the central European country of 10 million, on December 12 said it would like to offer its stock to the general public on the Prague Stock Exchange both to raise cash for future development and to boost the group’s profile among beer aficionados.

The company is the country’s fifth-largest brewing group behind three international groups and state-owned Budějovický Budvar AS.

“We’re seeing demand for our shares both from our commercial partners and from our consumers, which have become fond of our beers,” said Zdenek Radil, the group’s general manager.

The Lobkowicz group producers over 70 brews, centered on the world-famous Czech bottom-fermented lager style, also called pilseners, but the portfolio also includes a range of specialty beers such as ales, bocks or wheat beers as well as non-alcoholic drinks.

While the Czech beer market has declined 15% over the last five years due to two recessions and lifestyle changes that result in locals drinking less draft beer, the brewer said that the trend is offset by the steady rise in sales of bottled beer both at home and abroad.

If the listing takes place, Ceska Sporitelna AS, the Czech unit of Austria’s Erste Group Bank AG, would be the lead manager on the issue, the brewing group said.

The brewer’s stock would likely be a minor player on the exchange which is dominated by banks, a utility, a miner and the local telecommunications company.

This would be the second publically traded Czech drinks maker, but the first listed on the Prague Stock Exchange.

Soft drinks maker Kofola SA is listed on the Warsaw Stock Exchange.


13 December, 2013