The Czech Republic: Czech consumers complain of paying more for less beer

Prague pubs have recently come under fire for serving smaller amounts of beer, causing dissatisfaction among customers. Many establishments, experts say, have made it the norm to serve around 470 milliliters (a pint) instead of a half-liter, Expats.cz reported on September 11.

But why are pubs serving less beer? The answer may lie in the strict regulations enforced by the Czech Trade Inspection Authority (ČOI), which has been issuing fines for under-measured drinks. To protect themselves from these fines, pubs have started advertising – and serving – smaller minimum measures, to avoid getting in trouble. The swap from a half-liter to a pint, while not adjusting prices, unfairly impacts the consumer.

Other pubs have taken this practice even further, serving beers with a volume of only 0.4 liters. According to Maier, this is 20 percent less beer than a regular serving, and customers may not even realize they are being served less.

František Novotný, manager of U Pinkasů – a well-known Prague bar people have accused of underpouring pints – defended the practice by speaking to Czech media outlet iDnes. "We are stating the real minimum rate; we are not misleading anyone."

However, economist Tomáš Maier tells iDnes that this is a disservice to customers, as they may end up paying the same price for less beer. "With the [current average] price of a pint of beer...the pub will already 'earn' CZK 4 on one glass," claims Maier.

The largest Czech brewery, Plzeňský Prazdroj, recommends measures of 0.5 liters for "large" beers and 0.3 liters for "small" beers. Zdeněk Kovář, press spokesperson for Plzeňský Prazdroj, said that pouring the correct amounts is “crucial.”

The ČOI strongly disagrees with the practice of serving smaller measures. According to spokesman František Kotrba, pubs are required to have an officially certified measuring device in order to verify the conformity of the actual amount of the drink with the stated measure. Violations of this rule can result in fines of up to CZK 5 million.

On a long-term basis, beer prices have been rising in Prague and nationwide in recent years. A significant increase in the value-added tax (VAT) rate of draft beer implemented as part of the state’s 2023 budgetary reforms – from 10 to 21 percent – exacerbated the situation.

Data from Dotykačka, a company that analyzes cash register information, showed that the average price for a pint of 12-degree beer in Prague had risen to over CZK 70. Relative to the rest of the country, Prague residents and visiting tourists need to pay above the odds for their pint of beer. The national average last year was CZK 54.

Analysis from Dotykačka revealed that in July of last year, the average price for a pint of draft beer in Prague restaurants was CZK 64.3. In 2022, it was approximately CZK 59, and in 2021, the average stood at CZK 52. As of now, the average price is above CZK 73.

The top breweries in the nation, such as Plzeňský Prazdroj, Family Brewery Bernard, and Budějovický Budvar, also all announced plans late last year to increase their production prices, which ultimately affects consumers in Czechia.

These price hikes were mainly attributed to the increasing costs of raw materials, packaging, and rising wages, with additional factors expected to worsen the situation.

Plzeňský Prazdroj was the first to announce a price hike of nearly 6 percent in most of its products last year. Budějovický Budvar, on the other hand, followed suit with price increases ranging from 5 to 8 percent.

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