Kofola is pursuing other traditional brands. With the announced acquisition, Kofola wants to enter the beer segment with a regional presence
Kofola ČeskoSlovensko is buying a majority stake in Pivovary CZ Group, which develops the traditional beer brands Holba, Zubr and Litovel. The beverage family can thus enter another category at the regional level in which it can use its business, distribution and marketing know-how. Completion of the transaction, which is subject to the approval of the competition authorities, is expected early next year.
"At Kofola we have learned to develop traditional and local brands with a strong story. When the opportunity arose to invest in breweries that produce brands with a long history, backed by honest craftsmanship and modern production facilities, we didn't hesitate. We believe that the experience of our people can help their development," explains Jannis Samaras, CEO of the Kofola Group.
Pivovary CZ Group is the fifth largest brewing group in the Czech Republic, with its annual production this year exceeding 800 thousand hl, of which more than a third of the beer is destined for export markets. The company employs almost 500 people in its breweries in Hanušovice, Přerov and Litovel. The Holba, Zubr and Litovel brands have been brewed here for more than 130 years using traditional methods and the highest quality ingredients, mainly from local sources. Thanks to this, they are extremely popular with customers and independent experts, as evidenced by an unrivalled number of prestigious international and domestic awards.
"The quality of our beers is not only the result of careful adherence to traditional technological procedures of Czech beer production, but also the result of the expertise and skill of our employees. Respect for tradition, the skill of our people, the high technological level of our breweries, sources of quality water and raw materials, especially from local suppliers, are the basis of our success, potential and commitment for the future," says Ing. Jaromír Dvorský, Vice-Chairman of the Board of Directors of Pivovary CZ Group. "We are committed to preserving the craft brewing tradition, stable relationships with customers, suppliers and employees, and corporate social responsibility. These were all important criteria in the sale negotiations. We are glad that we have found a partner who will help us to maintain and further develop the quality of our beers and at the same time strengthen their business expansion," explains Jaromír Dvorský. "I would like to thank our
employees and business partners, without them we could not have achieved such success," he adds.
The new acquisition will enable the Kofola Group to grow in another stable segment with export potential. Considering the specifics of the beer market and with humility towards the art of the breweries' employees, Pivovary CZ Group will remain an independently managed segment of Kofola.
"Although we are not primarily concerned with direct synergies with our existing non-alcoholic business, the beer industry also has some common features with the beverage industry. Our goal is to support the art and quality of Czech breweries. It would be a shame if traditional Czech brands were to fall into the hands of foreign investors," explains René Musila, one of the founders and COO of Kofola Group, who will head the beer segment after the acquisition is completed.
In addition to the family-owned beverage company, two minority shareholders are behind the acquisition of Pivovary CZ Group. Kofola ČeskoSlovensko a.s. will become a 51% owner of the brewery company, the other co-shareholders are the investment group RSJ (29%) and ÚSOVSKO a. s. (20%).
"The entry into local breweries is another piece of the puzzle of our long-term strategy of private equity funds and we are glad that we could join forces with a company with such a reputation as Kofola," comments on a new cooperation Matěj Kumstýř, asset manager of the investment group RSJ. The group manages a broad portfolio of investments in the Czech Republic and abroad and focuses, among other things, on supporting Czech and regional prospective companies.
The parties have agreed not to disclose the price of the transaction. The transaction is valid subject to one condition precedent, which is the approval of the competition authorities. Completion of the transaction is expected early next year.