Leading Czech beer to be launched in Poland as part of drive into new markets

Plzensky Prazdroj, the leading Czech brewer and a unit of SABMiller, yesterday announced that it is set to launch the licensed production of its top brand Pilsner Urquell beer in Poland. Prazdroj said in a statement that tests at SABMiller's Kompania Piwowarska, which is to produce the brand, showed quality standards have been met. "We are confident that our target to get Pilsner Urquell among the top five worldwide selling beers is a realistic target", Prazdroj's Chief Executive Tony van Kralingen said. Prazdroj increased its sales in Poland by 58% to 108,000 hectolitres last year. So far, Czech companies, although renown for their beers, have failed to significantly expand production abroad. The move is a shrewd one as the Polish beer market is the fifth largest in Europe with annual consumption at 24 million hectolitres. Licensed production is one of the few ways to penetrate markets, and at the same time lowering entry costs. Pilsner Urquell is currently around 20% more expensive than other Polish brands. (Reuters)