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Heineken to merge two Breweries in Czech Republic

Heineken NV has announced plans to merge its local Kralovsky Pivovar Krusovice brewery with the beverage group Drinks Union (DU). Local reports say the merger is expected to be completed in the first half of the next year at the latest, citing Jiri Danek, head of Heineken’s Czech business. Heineken employs about 1,150 people in the Czech Republic and it has market share of about 12%. Czech breweries that belong to the Heineken group, produced 2.8 million hectolitres of beer last year. Two-thirds of the output were consumed in the Czech Republic and around 860,000 hectolitres were exported.
Last week Heineken announced that it wants to shut down breweries in Znojmo and Kutna Hora as it looks to cut costs. The latter belongs to DU, which also controls breweries Krasne Brezno, Velke Brezno and Louny and produces Zlatopramen, Breznak, Louny and Dacicky beer brands. DU employes over 500 staff. Speculations that the Dutch group has plans to buy local brewery Pivovary Staropramen from rival Anheuser-Busch InBev were dismissed.

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Thursday, January 18, 3:40 pm

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