by Eugene Vorotnikov FoodBizDaily.com Moscow
November 30 2009 - Plzensky Prazdroj, the leading brewing company in Czech Republic and part of SABMiller plc, has announced that it will increase prices by nearly 5% starting from the 1st January 2010, in order to accurately reflect the recently imposed increases on Excise duty and VAT.
The largest Czech brewery increased prices for the second time in the last 12 months. The latest price increase for the fifth brands of the company was in November last year.
"This price modification will not bring any benefits to our company as we are simply reflecting the increased excise duty on beer and the 1% increase in VAT. In fact PPAS will be absorbing the impact of increased excise tax on fuel as well as the increase in social contributions which are also components of the government's fiscal package" says the Sales and Trade Marketing Director of Plzeňský Prazdroj Tiarnán Ó hAimhirgín.
Most of the Czech restaurants have already said that they will increase prices for Plzensky’s brands which may result in slight decline in demand.
The Czech Republic's beer market is polarised between a couple of large brewers (Plzensky Prazdroj and the state-owned Budejovicky Budvar) and more than 30 smaller, local players, and some observers have expressed their concern that price fluctuations by the larger, international groups, could push some smaller players out of the market.
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Plzensky Prazdroj
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About Plzensky Prazdroj
Plzensky Prazdroj is the leading brewing company in Central Europe. It has the largest beer sales in the Czech Republic and is the largest exporter of beer to more than 50 countries all over the world. Through its brands Pilsner Urquell, Gambrinus, Radegast a Velkopopovicky Kozel, Plzensky Prazdroj sells more beer on the Czech market than any other company. Plzensky Prazdroj, a. s., is a member of the international group SABMiller plc, the second largest brewing company in the world. The group's flag ship for its international portfolio is the Pilsner Urquell brand.