Tuesday, March 25, 2008

One Big Heine

It looks like Dutch brewing powerhouse Heineken has swallowed up more smaller, weaker prey. This time, it's Drinks Union in the Czech Republic.

Already owners of the Starbrono and Krušovice brands, Heineken is looking to increase their market share in the Czech Republic, a country they deem to be rife with potential for expansion. This move essentially gives Heineken 12 percent of the market share in the Czech Republic, although the price tag for the deal has yet to be revealed. Some people have had a problem with it for a while.

With Denmark's Carlsberg successfully gaining control of Baltika through Baltic Beverage Holdings (BBH) as part of the deal for Scottish & Newcastle, Heineken has the opportunity to expand in a market that has yet to be fully tapped.

Both moves appear to be quite shrewd and well thought-out, as Eastern Europe seems to be ripe for the picking, so to speak. With a multitude of industrial-style lagers already saturating the place, it seems like a conglomeration of these breweries is a logical fit. This is not to say that all Eastern European lagers fall into this camp, just that it mirrors other countries in terms of sales of the cheaper, more commercial variety (see: the United States).

The danger is losing the variety of more traditional and exceptional beer being produced in these countries. I know, the whole "sky is falling" argument again. But really, I'm hoping to get to Prague in May, and I'm looking forward to sampling all it has to offer, especially when it comes to beer. I may be romanticizing the situation a bit, but it's a little disheartening to hear about the narrowing beer market in places historically associated with certain beers and styles, veritable Meccas of fermented grain.

Alas, that seems to be the path we're on these days.

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