Kofola, a well-known Czech soft drinks manufacturer, is currently exploring the possibility of diversifying its business by entering the beer market. The company is reportedly interested in acquiring a controlling stake in Pivovary CZ Group, which owns three popular Moravian breweries – Zubr, Holba, and Litovel. Negotiations are already underway, but it is not yet clear whether the deal will be completed.

Kofola has been facing increasing competition in the soft drinks market, which has led to a decline in its market share. By expanding into the beer market, the company hopes to capitalize on the growing popularity of craft beers in the Czech Republic. It is worth noting that this is not the first time that Kofola has expressed an interest in acquiring breweries. The company previously considered purchasing Pivovary Lobkowicz, which consists of seven regional breweries, but the Lobkowicz breweries were ultimately sold to a Chinese investor eight years ago.

If Kofola is successful in its bid to acquire Pivovary CZ Group, it will gain access to the three breweries’ production facilities and distribution networks. This move would give Kofola a significant advantage as it enters the beer market. The company has a strong brand reputation in the Czech Republic, and its existing distribution channels would help to ensure that its new beer products reach a wider audience quickly.

The Czech Republic has a long-standing tradition of brewing beer, and the country is home to many world-renowned breweries. The craft beer industry has been growing in popularity in recent years, attracting both domestic and international investors. As a result, the competition in the beer market is high, and new entrants will have to work hard to establish themselves in this space.

Overall, Kofola’s interest in brewing beer is a logical step for the company as it looks to diversify its business and remain competitive in the Czech market. If the deal goes through, it will be interesting to see how Kofola’s entry into the beer market impacts the wider industry and whether the company can establish itself as a key player in this space.

Article by Prague Forum