E-Malt.com News article: The Czech Republic: Brewer Budweiser Budvar to invest in returnable beer packaging

Budweiser Budvar is going to purchase returnable beer packaging worth more than CZK 62 million this year, the Czech brewer informed on July, 2.

According to Budvar, the main reason for the purchase is a growing demand for the beer from Budweiser Budvar Brewery in the recent years, as the brewery’s production has risen approximately by 14% since 2006, with the bottled beer demand increasing by more than 20%. Given that the kegs and crates remain within the distribution chain away from the brewery for 2-4 months, the brewery would very likely face problems covering all orders due to the lack of packaging in the summer months.

“The packaging will also be needed in connection with the launch of our latest newcomer - 11° Pardál Echt onto the Czech market. Furthermore, the time the contracts were signed was very favourable for the purchase, as prices of kegs and crates have substantially decreased compared to last year,” says Budweiser Budvar’s purchase and logistics department manager Pavel Pánek.

Budweiser Budvar is going to purchase a total of 20,000 KEG barrels and 230,000 plastic crates for 0.5 l and 0.33 litre bottles, making the purchase one of the brewery’s most important investments this year. A fully-computerised warehouse with the capacity of 2.4 million bottles worth CZK 87 million will be Budweiser Budvar’s largest investment.

Budweiser Budvar’s 2009 total investments are going to surpass the amount of CZK 500 million. For some years now, the entire brewery’s investment has been covered fully by the brewery’s own funds without loans or bank credits.

Budweiser Budvar, N.C. brewery has long been one of the most successful Czech foodstuff companies. Nearly half of its production is exported to more than 50 countries worldwide. Budweiser Budvar’s sales increased annually by 4.5 % in 2008, having reached the volume of 1,312,580 hectolitres of beer. The brewery’s 2007 gross profit annually grew by 13% onto the total of CZK 302 million. Since 1991, about CZK 3,500 million has been invested into the modernization and development of the brewery.


24 July, 2009