Beer Industry in the Czech Republic: Reasons for Founding a Craft Brewery

Abstract

The goal of this article is to evaluate the evolution of the brewing industry in the Czech Republic with an emphasis on the phenomenon of craft-brewery development. It deals with the influence of globalization on the structure of the Czech beer market and the rise of craft-breweries between 2000 and 2019. The main outputs come from research where a representative sample of 48 craft breweries was questioned from the Czech Republic. The result is the identification of the main factors influencing the increase of craft-breweries (legislation changes enabling entrepreneurship, increase of purchasing power of consumers, increase in demand for different beer styles, craft beers and specials, change of consumer behavior) but also the challenges that prevent their further expansion (lack of qualified brewers, complicated administration). The main motive for founding a craft brewery is an effort to improve beer culture in the Czech Republic and the ever-increasing demand for diversified beer (as opposed to the demand for the so-called euro-beers) and a good business opportunity stemming from this, which has been attracting more and more investors into this field.