Recession hits Prazdroj volumes

Pilsner Urquell proves resilient

Czech sales fall by 4.5%

SABMiller's Czech subsidiary Plzensky Prazdroj saw domestic volumes slump by 4.5% during 2009, reflecting the economic crisis and declining demand for beer in the country.

Overall the firm sold 10.5 million hl throughout the year, down 1.9% on 2008's performance. Foreign sales, accounting for around a quarter of Prazdroj's volumes, increased by 7.2%, driven by increased licensed production in neighbouring countries.

The firm was impacted by falling demand for imported beer in the US and declining exports to Hungary and Poland. Pradroj reported increased sales in Russia, the UK, France and Spain but said overall exports fell by 10.2%.

"Beer markets all over the world have been facing difficult times. The financial crisis has impacted both domestic and some of our export markets," commented Prazdroj managing director Doug Brodman.

At home Pradroj's mainstream Radegast and Gambrinus brands suffered from declining sales in Czech bars and restaurants as consumers reined in their spending. However Brodman said the decline was tempered by strong performances by the premium Pilsner Urquell, 11 Excelent and Kozel brands.