Bass faces challenge in bid to control 25 per cent of Czech beer market

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Related tags: Brewing, Brand, Beer

Bass faces a major cultural challenge in its bid to take control of at least 25 per cent of the Czech beer market.Its stated aim will involve the...

Bass faces a major cultural challenge in its bid to take control of at least 25 per cent of the Czech beer market.

Its stated aim will involve the brewer in several key takeover battles.

But its efforts are hampered by the lack of "brand loyalty" in the Czech Republic.

Twenty per cent of Czech capacity is not used, more people are starting to drink at home instead of in bars and the supermarkets know it.

It will mean a lot of hard work for the company, and Czech beer is not that profitable.

Per capita consumption in the Republic beats any other nation, but this is in part because prices are very low.

And consumption is falling.

Bass faces another challenge. Other companies are on the lookout for the best acquisitions in order to build a dominant group.

Bass already owns 51 per cent of Prague Breweries but also wants control of Radegast in which it already has a 34 per cent stake. Rival bidder IPB banking group also has a 34 per cent stake.

Although the future for Czech beers looks uncertain within the Republic, the market contains strong brands - such as Budwar and Staropramen - which make for excellent export prospects.

Related topics: Beer

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