Chernarussian Beer Export Market Stagnates

Written by Jen Middleton Thursday, 17 June 2010 14:00

SOUTH ZAGORIA, Chernarus (AAN) – Chernarussian Brewers are Hopping Mad.

Regional tensions have caused an unwelcome depression in one of the oldest and most respected industries in Chernarus, which has sparked anger at the failure in diplomacy to negotiate a path through, and has raised controvesy in certain areas regarding rumoured changes in traditional business models.

In April 1990, Zdroj Zagoria Pivovary proudly announced the most positive financial figures in its prestigious 150 year history; incumbent president, Karel Morpivký, declared a ‘golden age’ of brewing in South Zagoria. In stark contrast, today some market analysts moot a potentially catastrophic merger with Qontrol Brouwerij, under the direction of American brewing magnate J. J. van ‘t Pils.

Regional Tension

The depressed state of the Chernarussian beer export market has driven the industry into a sharp decline. While domestic beer sales have provided strong growth figures, Green Sea export territories – the backbone of Zdroj Zagoria's business model – has been affected by regional geo-political tensions.

The Takistani beer market, historically second only to Chernarus in terms of net regional consumption, has run dry since late 1992, when the hard line socialist administration seized power. The Takmyr "Dragon" junta quickly moved to implement severe protectionist policies, banning the production of domestic alcohol, and the import of foreign products, closing key trade routes across Takistan’s borders to the rich markets of Karzeghistan and the west, which had accounted for more than 90% of export territories.

Chernarussian brewers quickly sought to switch from land-based to maritime export routes across the Green Sea; however, this move brought about its own set of problems. The increased costs of naval logistics, combined with a damaging rise in freight piracy in the region, drove prices up and profits down.

Less quality-conscious markets shifted consumption trends towards cheaper American-owned brewers - backed by enormous advertising campaigns - exasperating the state of the market, driving the exports for traditional brewers into the ground.

Within Takistan, there is a tangible demand for Chernarussian beer; recently, reports of smuggling across the Chernarus-Takistan border have doubled. Takistani border patrols have increased; yet proportionally, so has the ingenuity of the smugglers.

Encouraging Signs

Valued highly, produced lovingly, Chernarussian beer, and companies such as Zdroj Zagoria Pivovary, should march forward through this difficult period. The domestic beer market is strong, and the current CEO, Jakub Vrána, is confident that, ultimately, the quality of the product will compensate for the lack of slick advertising:

“Despite the current state of the market in - what are historically - our core territories, I am fully confident that Zagoria Zdroj will persevere through this period of uncertainty by sticking to our core values. While other companies may boast to have the most realistic simulation of our product, there is no substitute for the real thing.”

"We obviously need to look at different business models, and evaluate the most appropriate ways of getting our very popular product to market. Sometimes these moves can spark controversy; sometimes it's justified, sometimes it isn't. Ultimately, Our loyal customers need to appreciate that the company has always put the consumer at the heart of its business choices, and that is certainly not something that is going to change"

Regional tensions have caused an unwelcome depression in one of the oldest and most respected industries in Chernarus, and have sparked anger at the failure in diplomacy to negotiate a path through; yet, as the saying goes in Elektrozavodsk, ‘where there is a beer to be sold, determined Zagorians will be sure to turn a profit’.