Beer Culture

Stories about great beer from the countries that invented it.

Tag: Kutná Hora

Heineken’s Czech Takeover OKed

The news yesterday was that Czech regulators have given a big green light to Heineken’s takeover of the four Drinks Union breweries (Zlatopramen, Louny, Velké Březno and Kutná Hora). According to Reuters, the Czech anti-monopoly office has no problem whatsoever with the deal.

There’s a great quote at the end of the story: “The office came to the conclusion that the merger will not result into a substantial breach of competition given a relatively low market share of both competitors and the existence of significant competitors.”

In other words, “Since SABMiller already has 49% of the market, what difference does it make?”

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Heineken Drives On Deep Into the Czech Market


Heineken announced yesterday that it is taking over the four great brands of the Czech Republic’s Drinks Union brewery group (Zlatopramen, Velké Březno, Louny and Kutná Hora), which have an overall market share of 4%. The takeover will make Heineken the third-largest player in the Czech market after SAB-Miller and InBev, bumping Budvar to fourth place.

It’s not exactly a surprise — news of the proposed sale was floated last autumn — but it still caused ripples across the small pond of the beer world: within a few hours I was contacted by friends at CAMRA about the purchase, and EBCU members apparently all got the message via email. Back here at home, Pivní deník reported the story, posing some interesting questions.

To paraphrase: If Heineken decides to close some of its newly acquired breweries in the name of streamlining and efficiency, who will be the first? Louny, which is closest to Krušovice, which already has plenty of unused brewing capacity? Or Kutná Hora, which Drinks Union doesn’t actually own but only rents from the town? Or one of the twinned breweries of Zlatopramen and Velké Březno? Would two breweries in the same town really survive a takeover by such a major international brewing group?

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