A Czech original
Do you think Anheuser-Busch (A-B) will ever back down in the trademark dispute?
A universal solution to this dispute does not exist. The only possible way would be by an agreement. The heart of the dispute lies in the relation between the original Budweiser beer produced in our city and its American copy. It is a matter of conflict between new and old cultures and their approach to tradition.
Both breweries have so far protected their rights and that outwardly shows in lawsuits. In the past 10 years we have achieved some developments and our position is better today than 10 years ago.
We have managed to get the 'Budejovicky Budvar' community trademark valid in all EU countries. The EU also officially protects the 'Beer from Budweis' name thanks to the 'Protected Geographical Indication'. Our trademarks have so far been defended in the UK, Japan, South Korea, Benelux, Cambodia, Finland, Australia, New Zealand and other countries, most recently Portugal and China.
You say that A-B tactics have hampered you in some markets, but hasn't the dispute actually given you a lot of free publicity and advertising that you would not otherwise have had?
Legal disputes are in no case our marketing strategy and our side does not intentionally initiate them. Our aim is to protect our rights and a stable and clear trademark situation in particular, as it plays an essential role in our trade development. The publicity is only a by-product and does not help to solve the heart of the problems at all.
Moreover, thanks to the disputes, entering the new markets is very complicated and lengthy. China is a typical example. We had been trying to register 'Budejovicky Budvar' trademarks there as early as in 1997. Despite the fact that three Chinese institutions subsequently ruled in our favour, in August A-B appealed yet again against the last ruling and therefore postponed the registration of our trademark. While the Chinese court eventually dismissed this appeal and today our 'Budejovicky Budvar' trademark is registered, we have unfortunately lost nine years.
How hard is it trying to operate in a market so dominated by the big PLCs?
The competitive environment in the Czech Republic has sharply increased, following the entry of SABMiller and InBev. Due to a privatisation process at the end of the 1990s, a dominant player was somewhat unnaturally created. Pilsner Urquell controls almost 50 per cent of the Czech market. Another 14 per cent is controlled by InBev.
All of a sudden, basically overnight, we had very strong rivals standing against us. We had to adapt to the new situation and find the correct business policy as well as a new communication strategy. We managed to do that.
What is Budvar's global strategy?
We are planning to increase sales particularly in our key markets, which we consider potential for the sale of quality authentic imported beers, as definitely are the UK, Austria, Germany, the USA and Russia. We obviously intend to look for new opportunities. For instance, we are preparing to start business activities in China soon, following a final resolution of the trademark situation.
Are you pleased with the success of Budvar Dark in the UK? Do you see it as a product you can roll out worldwide?
Launching the product into the British market had been a priority to us, as we are aware of the fact that British customers are very demanding but are great beer connoisseurs and can appreciate quality. In 2005, we started to export Budweiser Budvar Dark to the UK; at first in kegs and since January 2006,
also in bottles. We launched this type of packaging into the British market several months earlier than into the home Czech market. Presently, we are exporting Budweiser Budvar Dark to Germany, Finland, Russia and Slovakia as well and we would like to put it into other markets.
What are your overall expectations for Budvar in the UK?
Our British customers show very strong loyalty towards our trademark, which cannot be built overnight. One must work hard for years and present the customers with exactly what has been promised. We are proud that Budweiser Budvar was the only Czech product included on this year's British CoolBrands list. We are the most sold imported premium lager and we are going to do everything we can to stay in that position. A long-term, gradual sales increase remains our priority in the UK. We are planning to work on strengthening the distribution in some areas, such as the Midlands or Scotland.
CV:
1991-present -
General director, Budweiser Budvar
1983-1991 -
production engineer/deputy brewmaster, Budweiser Budvar, National Corporation
1972-1983 -
- Department of Fermentation, Institute of Chemical Technology, Prague
- Brewing, Technical College of Food Technology, Prague
