Blog: Czech mate for beer?
Chris Mercer | 28 September 2011
Czech beer consumption has fallen back considerably for the past couple of years, not that you would necessarily know it from the Prague cafe that I have just been sitting in.
It's 11:00am in Prague and three quarters of the tables here at this airport cafe are adorned by lager, mine (ahem) included. Ok, perhaps airports are a special case, but there surely can't be too many countries in Europe where this is the social norm, rather than the exception.
Czech is synonymous with beer, from its renowned Saaz hops to its position as the world's top beer consumer - per capita, naturally. But, under the surface, all of this is changing and brewers in Czech face tough times.
Excise tax has risen by more than 10% in the past two years, the global economic downturn has eaten into consumer spending power and, what's more, wine appears to be turning heads in Prague's trendier quarters. Per capita beer consumption in Czech has fallen from 158.1 hectolitres in 2008 to 144, according to a report published this month by Brewers of Europe.
It's not just home consumption, either. The Brewers of Europe figures show that exports of Czech beer fell by 14% between 2008 and 2010. Inevitably, jobs have been lost in the sector.
However, from what I have seen, there are still signs of vitality in the beer sector. For one thing, a flowering of microbreweries has taken the total number of breweries in the country up by 13% in the last two years, to 145. Then, there is innovation. StarBev, who invited to me Prague, this summer launched Staropramen Cool Lemon, a 2%abv lemon beer that has, according to the company, been flying off the shelves.
Winning over a new generation of consumers with new products, then, may offer a lifeline to the industry.
Whisk(e)y companies spend a lot of money and effort ageing their products for that premium taste....
PepsiCo created a stir last week with the news it is testing a product called Caleb's Kola, with some in the media claiming it was the beginning of a new “craft soda” category....
SABMiller's bid to widen the appeal of beer is very much in evidence at its latest 'House of Peroni' - with beer cocktails and a bigger bottle for the Italian lager brand on offer. ...
Here's a round-up of the big stories on just-drinks last week, featuring PepsiCo, SABMiller, the Scotch whisky category and the US wine market....
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Analysis - Remy's Cognac "dead-cat bounce"
- Focus - Remy Cointreau's H1 Performance by Brand
- SABMiller's troubles fuel M&A rumours
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- United Spirits sees Q1 net loss
- Diageo Q1 sales dip "in line with expectations"
- TWE unveils Penfolds range after CEO's "bold move"