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CASTLE MALTING NEWS in partnership with www.e-malt.com Danish
17 November, 2006



Brewing news Czech Republic: Plzensky Prazdroj opened new filling room worth CZK1 billion

The largest Czech brewery Plzensky Prazdroj opened November 16 a new filling room worth CZK 1 billion, the biggest investment in its history, Prague Monitor published November 16.

Filling room manager Josef Prochazka told CTK the construction cost CZK 450 million and technologies CZK 550 million. The new facility should help Prazdroj meet rising foreign demand for Pilsner Urquell beer.

"The new filling room will have two lines, one for all types of bottles with a capacity of 60,000 bottles an hour and the other for cans with a capacity of up to 38,000 cans an hour," Prochazka said.

The filling room launched full operation immediately after Czech President Vaclav Klaus cut the golden tape today.

Czech Beer and Malt Association head Jan Vesely said this was the most modern filling room in Europe. After Prazdroj has completed the whole facility with nine lines, it will also be the largest one, he added.

South Africa's SABMiller, which owns the brewery, has invested CZK 11.4 billion since its entry into Plzensky Prazdroj. It now plans to build another filling line for bottles and yet another one for kegs.

The company expects to invest CZK 1.2 billion this year and raise output of its premium lager from 1.5 million to 2 million hectolitres a year at end-2006.

Alan Clark, SABMiller executive director for Central and Eastern Europe, said Pilsner Urquell was the most important brand of the group.

Some 55 percent of Plzensky Prazdroj's output is draught beer. The brewery expects exports to grow remarkably, while sales to the home market should stay at last year's level.

Clark said Prazdroj expected a significant increase in exports to Great Britain, the US and Germany next year.

In 2005, the company sold 8 million hectolitres of beer in the Czech Republic and raised exports by 29 percent to 2.2 million hectolitres.

In the financial year from April 2005 to March 2006, Prazdroj made net profit worth almost CZK 3.4 billion on CZK 13.55 billion in sales.

The new filling plant, which will become part of the brewery tour from November 20, has replaced an export filling plant from 1967 with a capacity of 36,000 bottles an hour.





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