Pivovar Ostravar will phase out beer production in Ostrava during 2027, transferring its core brand brewing operations to Prague’s Smíchov brewery. The consolidation affects approximately 120 production workers, according to an announcement by parent company Pivovary Staropramen.
The closure brings an end to brewing tradition at the historic industrial site, which was founded in 1897. While the physical boiling vessels in Ostrava will go silent, the company maintains that the distinct taste of its regional beers will survive the transition.
Pivovary Staropramen Cites Rising Costs and Falling Consumption for 2027 Shutdown
Management pointed to profound shifts in the domestic beverage market as the driving force behind the restructuring. Company executives outlined a combination of declining beer consumption nationwide alongside mounting operational expenses for packaging materials, energy, and freight transport.
The decision follows extensive internal financial analysis by the corporate network. Martin Čermák, country lead for the Czech Republic and Slovakia at Pivovary Staropramen, described the measure as a necessary step to secure long-term commercial viability and manufacturing competitiveness across the country.
This is one of the hardest decisions we have had to make in recent years,
Martin Čermák said, adding: We are very well aware that Ostravar is much more than just a brewery.
The company operated the site despite substantial capital expenditures in recent years, which included investing in a modern canning line designed to keep pace with trends.
Impact on 120 Production Workers and Transition Support Measures
The restructuring specifically targets positions directly tied to brewing operations. Company leadership confirmed that approximately 120 employees will lose their jobs as operations wind down in staggered waves throughout 2027.
However, we must primarily ensure the long-term business sustainability, operational efficiency, and competitiveness of beer production in the Czech Republic for the future as well. Martin
HR director Lenka Adamcová noted that management met with labor unions and the affected workforce to outline the phased closure. To soften the blow, the enterprise designed an assistance package that exceeds standard collective bargaining requirements.
The organization is coordinating its placement services directly with the regional branch of the Labor Office of the Czech Republic and other employment partners.
Transfer of Production to Prague and Regional Distribution Plans
Brewing operations will migrate to the corporate network’s facility on Smíchov in Prague. Corporate representatives assured regional consumers that the flavor profile of the brand will remain unchanged under the supervision of a former head brewer of Ostravar.
While production leaves the city, local distribution will remain anchored in the region. Ostravar anchors a market where most output is consumed locally across the Ostrava, Karviná, Opava, and Nový Jičín districts. Commercial, marketing, warehousing, and transport teams will maintain their physical presence in the Moravian-Silesian Region to preserve supply chain continuity for local pubs and retail partners.
Future utilization for the brewery complex located on Hornopolní street remains undetermined.
