Change is Brewing at Pilsner Urquell

-by CR Saikley ©1994)



These are tumultuous times in Eastern Europe. Communism is practically dead, the lines on the map have been redrawn, and some nations have plunged into bloody civil war. The former nation of Czechoslovakia is now split into two separate countries : the Czech Republic in the west, and the Slovak Republic in the east. Along with the change in government is an attendant change in philosophy; the people are opening up to the ideas of the west. Capitalism is taking hold, and there is a great deal of investment and rebuilding going on. Even though these are difficult times, a general sense of optimism toward the future prevails.

There are big changes at Pilsner Urquell as well, but that's getting ahead of the story. First, a little history. The story of brewing in Plzen goes back to at least the 13th century, when the burgers of the town were granted brewing rights by King Wenceslas. The breweries were typically large homebreweries, and for several centuries, the beer produced was pretty wretched. During the 19th century great advances in brewing technology took place in Munich, Vienna, and Copenhagen, and the citizens of Plzen set out to imitate the beers of Munich. In 1842, the new brewery was established, and although the beer produced there was not what was expected, it proved to be very popular. By 1870 the beers of Plzen were exported to Vienna, Paris, London and Moscow. The rapid growth continued, and by 1913, the brewery's output exceeded 1 million hectoliters, making it the largest brewery in Europe.

The 20th century has not been so kind to the brewers at Plzen. The first world war brought an end to their rapid growth, and the time between the wars was one of stagnation. The second world war put the Soviets in charge of Czechoslovakia, and separated Eastern Europe from the west. During most of this century, the brewery's output has remained a constant 1.3 million hectoliters. The export sales of Pilsner Urquell generated a good deal of hard currency, but this was siphoned off by the Communists. The brewery was unable to expand or modernize.

The Velvet Revolution of 1989 brought big changes to the nation and to the brewery. As capitalism was introduced, new ways of thinking were required. Suddenly they had to be concerned with capitalist concepts such as profit and efficiency. However, old habits die hard, and some of the old guard were unable to adapt. There was a lingering attitude that it was easier to cover oneself by writing lengthy excuse letters rather than solving a given problem. Unfortunately, the first true taste of capitalism that some employees experienced was being layed off!

A more positive aspect of the transition is that the brewery is now able to modernize and expand production, and they have tremendous plans for very carefully doing so. There is substantial investment in Plzen, most of it coming from bank loans that the brewery has taken on. They have installed 104 new stainless fermenters ranging in size from 800 to 3600 hectoliters, which more than doubles their fermentation capacity. To match this equipment, a new four story complex is under construction which will house modern filtration, kegging, and bottling equipment. This will be followed by a new brewhouse. Production projections call for 1.5 million hectoliters this year, going up to 2 million next year. Interestingly, all of this increase in production is aimed at the Czech market, which comprises the bulk of their sales.

All over the country, the larger breweries are investing and expanding, which of course means that we'll see a shake out of the smaller Czech and Slovak operations. Already, Pilsner Urquell has gobbled up the nearby Gambrinus, Domazlice, Cheb, and Karlovy Vary breweries. Undoubtedly more consolidation will follow.

This may not be as bad as it sounds. Even though it's always a shame to see smaller enterprises consumed by the big guys, at least the large Czech breweries have remained true to their traditions. Consequently, Czech brewing heritage does not have the large discontinuity that we find in America. Indeed, the American drinker would be surprised to learn that for the most part, the largest Czech breweries make the best beer.

Amidst all of this change, the brewers in Plzen are committed to keeping one thing constant, Pilsner Urquell itself. They fully recognize the value of their 150 year old reputation, and would do nothing to compromise it. To this end, extensive experiments have been undertaken to determine exactly which parts of the old process must be retained to preserve the character of their world renown brew. In side by side comparisons, their expert panel of tasters has found that there are no detectable differences between beer lagered in wood versus stainless steel. However, they have found that the primary fermentation must take place in the traditional open wooden barrels, or the character of the beer is changed. Thus the shiny new fermentation facility is reserved for some of their other products, but not for the original. Further investigation led to an interesting experiment with a surprising result.

A standard batch of Pilsner Urquell was brewed and fermented in the normal fashion, while across town at the Gambrinus brewery, a standard batch of the similar Gambrinus was brewed and fermented in its usual fashion. Then both test batches were transferred across town for lagering in stainless at the other brewery. Upon maturation and tasting, the panel was able to detect these beers as different from the normal beers. In effect two new beers were created, somewhere in between the originals. Thus it was concluded that the convenience of being able to lager Pilsner Urquell at either facility must be sacrificed for the sake of the beer's quality.

Every aspect of the modernization effort is being scrutinized very carefully. The brewers rightly feel they are compelled to modernize, but must proceed with utmost caution. They are simultaneously faced with the challenges of an unknown world, and a future that is wide open. Let's hope that the stagnation of the 20th century is over, and that Pilsner Urquell moves into a new era of growth and prosperity.

The author wishes to thank Mr. Jaroslav Rous, Technical Director of Pilsner Urquell, for his warmth and hospitality. His assistance in writing this article has been invaluable.



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