Czech brewer Budvar again increases net profit amid pandemic

PRAGUE –

Budvar, the Czech beer maker that has been in a long legal conflict with Anheuser-Busch about the Budweiser brand’s use, increased its net profit by 10% for the second year. It saw record production and exports despite the coronavirus outbreak.

Budejovicky Budvar NP – A 126-year-old state owned brewery saidIn 2021, its net profit was 337 million Czech crowns ($14.4million), an increase of 305 million from the previous year. Its net profit grew by nearly 10% in 2020.

Its exports grew by 11% in 2021 and reached 1.3 million hectoliters (34.3 millions gallons). Budvar beer is sold in more 70 countries, with Germany as one of its largest markets.

Budvar also saw record production for the second consecutive pandemic year. It grew 4.6% to 1.8 Million Hectoliters (47.8 Million Gallons).

The beer markets were affected by this pandemic. Beer in barrels and tanks saw a decline in demand, while bars and restaurants were closed for a while and bottled beer saw a rise.

In recent years, the brewery has increased its production to more than 2 million hectoliters (52.8million gallons) annually. This investment allowed it to react to market changes during the pandemic.

The TOP 09 conservative party, which is a member the ruling coalition, suggested that Budvar could be privatized as it is not the state’s role to brew beer. It received mostly negative responses. The government has not yet discussed the issue.

Budvar and Anheuser Busch have been at odds over trademarks since 1906. Anheuser-Busch joined AB InBev 2008

Budvar is the only company that can sell Budweiser beer in all major European markets, including Germany. After a court ruled that Budweiser can be sold in the United Kingdom by both AB InBev and Budvar, Budweiser can also be sold in the United Kingdom. AB InBev is much larger.