Last year, the company’s sales of beer, including the Czech Republic and abroad, fell by 314 thousand hectoliters to 2.815 million hectoliters, yet last year the company increased its profit compared to 2022.
According to her, the reason for last year’s drop was mainly the so-called corrective items. In the 2022 annual report, the company says that the increase in accounting items caused a significant increase in interest rates due to high inflation and uncertainty in global and domestic markets due to the war in Ukraine.
825,000 hectoliters of beer went abroad last year, 127,000 hectoliters less than in 2022. The company will sell the most beer to Slovakia, Sweden and Germany. “As far as exports are concerned, the company has still not resumed its business activities on the territory of Russia,” said Denisa Mylbachrová, the company’s communications manager.
Beer was drunk in the Czech Republic last year at least since 1963
Economic
Domestic sales last year fell 8.6 percent from the previous year to 1.99 million hectoliters. The company explains the decline mainly by price increases due to high inflation.
Operating profit EBITDA, i.e. profit before interest, taxes and depreciation, fell by ten million to 398 million crowns last year, according to the company, this is a consequence of inflation and the increase in service prices.
Staropramen breweries are part of the Molson Coors North American brewing group. For a long time, they have been ranked second on the Czech brewing market behind Plzeňský Prazdroj, which sold 7.4 million hectoliters of beer in the Czech Republic last year, 1.2 percent more year-on-year.
The trend is non-alcoholic and flavored beers
Currently, Pivovary Staropramen focuses more on premium beers, last year it launched, for example, a non-alcoholic version of Stella Artois beer or an improved Staropramen 10. The company is thus responding to the trend of recent years, when beer consumers are decreasing and people who drink non-alcoholic beers or flavored ones are increasing variants.
According to this year’s research, the share of people who at least sometimes drink beer has been decreasing since 2016. The average consumption per inhabitant decreased from 136 to 128 liters per year last year compared to 2022, the Czech Association of Breweries and Malthouses reported earlier.
In addition to the Czech beers Staropramen, Braník, Ostravar or Mustang, Staropramen breweries also offer Belgian beers Stella Artois, Hoegaarden and Leffe on the Czech market. From 2021, the company also sells the Irish beers Guinness and Kilkenny.
Czech breweries brewed roughly 20 million hectoliters of beer last year, which was 2.7 percent less year-on-year. Of the beer brewed in the Czech Republic, 15.2 million hectoliters were consumed on the domestic market last year, 2.4 percent less year-on-year. After two years of growth, last year’s export of beer abroad also decreased by 4.3 percent to 5.17 million hectoliters.
Classic hops have been replaced by “extract” and “product”. Some beers are almost not even brewed anymore
Economic
Right, so apparently, these beer-slinging fellas at Staropramen, they shifted less beer last year than a mime at a rave. Like, a lot less. 314,000 hectoliters? That’s enough to fill Big Ben with lager! And yet, somehow, their profits went up.
Now, you’d think selling less of something would mean you make less money, right? Unless they’ve found a way to sell air with a fancy label and call it "premium lager essence". Or maybe they’re getting those sweet, sweet tax breaks for brewing less, who knows?
But hold on, the "corrective items" get blamed for the drop. Like, mate, you can’t just blame your hiccup on corrective items.
Is it just me, or does that sound like corporate speak for "oh, inflation’s kicking our arse"?
And inflation, eh? It’s like the guest at a party who doesn’t know when to leave.
Apparently, people just aren’t drinking as much beer anymore. Shocker, I know. Who would have thought that people would suddenly develop a taste for, I don’t know, water?
So, now they’re trying to push this non-alcoholic nonsense.
Non-alcoholic beer! It’s like calling a cat a "domesticated lion". It just ain’t right.
But hey, they’re also trying to flog us "flavoured" beers. Look, I like a bit of variety as much as the next bloke, but when you start adding things like mango and passionfruit to beer, you’ve officially jumped the shark.
They’re even selling Irish beers now? What next, they’ll be stocking up on Belgian chocolate and claiming it’s Czech? Honestly, it’s enough to make you crave a good old fashioned pint of plain, boring, non-trendy beer.
But hey, what do I know? I’m just a comedian. Perhaps the future of beer is esoteric Bavarian hop blends and organic quinoa infusions.
Anyway, there you have it. The state of the beer industry. Or, as they like to call it, "corrective items". Cheers, everyone!
hic
In 2023, Pivovary Staropramen experienced a significant dip in beer sales, totaling 2.815 million hectoliters, a decrease of 314,000 hectoliters compared to the previous year. Despite this decline, the company managed to increase its profits compared to 2022.
The primary factor contributing to the decrease in sales was attributed to what the company terms “corrective items.” These include accounting adjustments impacted by rising interest rates, driven by high inflation and global economic uncertainty exacerbated by the war in Ukraine.
Exports of beer reached 825,000 hectoliters in 2023, marking a decrease of 127,000 hectoliters from 2022. Slovakia, Sweden, and Germany consistently stand as the company’s top export destinations. Notably, Staropramen continues to abstain from conducting business in Russia.
Beer Consumption in the Czech Republic Reaches Historic Low
Economic
Domestic sales within the Czech Republic saw a decline of 8.6 percent, amounting to 1.99 million hectoliters. This downturn is directly attributed to increased prices, a consequence of the prevailing high inflation.
The company’s operating profit, EBITDA, experienced a reduction of ten million crowns, settling at 398 million crowns. This decline is attributed to both inflation and the rising costs of essential services.
Pivovary Staropramen, a subsidiary of the North American brewing giant Molson Coors, maintains its position as the second-largest brewer in the Czech market. This follows closely behind Plzeňský Prazdroj, which sold a substantial 7.4 million hectoliters of beer within the Czech Republic in 2023, showcasing a 1.2 percent increase year-on-year.
Rise of Non-Alcoholic and Flavored Beers Signals Shifting Consumer Preferences
Pivovary Staropramen is strategically focusing on premium beer offerings, exemplified by the introduction of a non-alcoholic Stella Artois beer variant and an enhanced Staropramen 10. This move aligns with the growing consumer trend towards health-conscious choices and a preference for diverse beer experiences. As traditional beer consumption decreases, non-alcoholic and flavored beer options are gaining popularity.
Research indicates a consistent decline in the proportion of individuals who consume beer since 2016. Average annual beer consumption per capita dipped from 136 liters in 2022 to 128 liters in 2023, as reported by the Czech Association of Breweries and Malthouses.
Beyond the Czech staples of Staropramen, Braník, Ostravar, and Mustang, the company also distributes renowned Belgian brands like Stella Artois, Hoegaarden, and Leffe within the Czech market. Since 2021, Staropramen’s portfolio has been expanded to include Irish favorites Guinness and Kilkenny.
The overall beer production in the Czech Republic reached approximately 20 million hectoliters in 2023, reflecting a 2.7 percent decrease year-on-year. Domestic consumption amounted to 15.2 million hectoliters, down 2.4 percent compared to 2022. After two consecutive years of growth, beer exports also declined by 4.3 percent to 5.17 million hectoliters.
Classic Hops Receding: A Shift Towards Extracts and Products
Economic
How is Staropramen increasing its profits despite a decrease in beer sales?
## Beer Sales Down but Staropramen Profits Up: What Gives?
Today we’re talking to economic analyst, Brenda Beerbrain, about some curious financials coming out of Pivovary Staropramen, the Czech brewery known for brews like Staropramen and Braník.
**Me:** Brenda, thanks for joining us. So, Staropramen’s sales are down, but profits are up?
**Brenda:** That’s right. They sold 314,000 hectoliters less beer this year, a significant drop.
**Me:** So, how are they making *more* money?
**Brenda:** They’re blaming something called “corrective items.” bookkeeping things, apparentl.y But let’s be real, it’s probably inflation. Higher prices mean higher profits on each beer.
**Me:** Is this a good thing?
**Brenda:**
Hard to say. People aren’t drinking as much beer as they used to. Staropramen’s domestic sales were down 8.6% this year.
**Me:** Why the decline in beer drinking?
**Brenda:** A couple of factors. High inflation is pushing people away from discretionary spending. Plus, Staropramen’s pushing this non-alcoholic and flavored beer trend, and I don’t think everyone’s buying into it. It’s like putting lipstick on a pig.
**Me:** So, what’s next for Staropramen?
**Brenda:** They’ll likely continue experimenting. Maybe we’ll see some cilantro lime Pilsner or a Matcha Stout. Who knows?
But, the big question is whether people will carve out a taste for it.
**Me:** Well, Brenda, thanks for tasting these economic realities.