Czech beverage group Drinks Union has acquired compatriot brewer Pivovar Kutna Hora brewery and will now begin to increase production there.
Although Drinks Union - a joint venture between brewing groups Pivovary a sodovkarny Brno and Ustecke pivovary - have taken over the ownership of the company's brands, Kutna Hora's brewery and plant will remain the property of the town of Kutna Hora where the company is based.
With a major injection of capital expected from Drinks Union, annual output at the brewery will be raised to 250,000 hectolitres - a significant increase on the 70,000 hl produced in 2001, according to a report from Interfax.
Two years ago, the then-owners of Kutna Hora, Bohemia brewery, announced plans to close the brewery in a bid to cut costs. But with the brewing industry being such a major part of life in Kutna Hora, the town's authorities decided to invest in the plant in order to maintain jobs and the town's economic survival.
If Drinks Union is successful in increasing output at the plant, the town will consider selling the brewery premises to the new owners. The current deal involves leasing the premises to Drinks Union until January 2019.
Drinks Union last month agreed to take over another Czech brewer, Pivovar Louny.