A true pilsner should be all-malt, a shade of gold and decidedly hop-first, with a crisp bitterness and rambunctious aroma overlaying soft Continental maltiness. Pilsner Urquell is the original, implicit in the name, and is the triumphant culmination of the Bohemian brewing in Plzeň, an area known for its superior malt and hops, and unfortunate lack of direction. That direction was supplied by a famous brewer―along with yeast from Bavaria―and a couple of whirlwind years transformed Plzeň from substandard to sublime.

The Bohemian Life

The Czech territories have been under the auspices of various empires over the past 2,000 years, and like most of the European lands, the inhabitants brewed beer. Trade routes crossing Europe during the first millennium passed through Bohemia and Moravia, now part of the Czech Republic. Settlements where Prague and Plzeň now sit were key stations for commerce and respite. Bohemia has nearly perfect conditions for growing hops, which cultivated a thriving hop industry. This valuable, coveted commodity was exported extensively, as hops were becoming an ordinary brewing ingredient. First agricultural note was in 859 A.D., and export in 903, meaning that Bohemian hop merchants have been in business for over 1,100 years.

The Žatec region produced the best, known as Žatec Red, or the familiar Saaz. So important were they that it was made a capital crime to smuggle rhizomes out of the territory. Cities were built on the strength of Bohemia’s hop production, and the beer-centric cities of Plzeň, Prague and České Budějovice have always been part of Bohemia.

Bohemia and adjacent Moravia has soil unmatched for growing wheat, oats and barley. Though beer was still a multi-grain tipple, the seeds were sown for what became the world’s most important barley growing region. Moravia especially cultivated, by careful selection, what is considered the finest barley in the world over several centuries. By the mid-19th century, a wealthy landowner developed the Hana variety. It is considered the progenitor of all modern types, having genetic ties to premium barley grown in Germany and England.

Modern Plzeň was granted cityship in 1295 by King Wenceslas II of Bohemia on a site 10 kilometers from the old settlement at the confluence of 4 rivers, convenient to trade routes. The Good King granted the 260 citizens of New Plzeňthe right to brew in their homes with wort from a communal brewery. History seems to cast the Bohemians as a cooperative lot, evident in their collective brewing persuasions. Soon, a guild of brewers and farmers was formed to ensure that their product would remain locally robust and to allow passage of the craft to their descendants.

Even with outstanding indigenous hops and barley, Bohemian brews were not more highly regarded than their neighbors in Germany. Bavarians were perfecting bottom-fermentation, and Einbeckers to the north were fine-tuning their renowned bock. Meanwhile, contemporary Bohemian brews were rather undistinguished. Perhaps this was due to the lack of continuity and endless, chaotic change of rule that hovered over them for centuries. The Thirty Years War (1618-1648) was especially devastating for Bohemian brewing. Within 200 years though, Plzeň would rebound and take the world by storm, combining local ingredients, the savvy of an invited guest and yeast from an unlikely source. They have never looked back.

But this is the agreement nobody expected. It comes after more than a century of bitter recriminations and costly legal battles over who has the rights to the trademark Budweiser.

The attitude at the London offices of Budweiser Budvar UK—where the beer is one of the top imported lagers—was simple as well as jubilant: “A-B needs us more than we need them.” The facts bear this out. Imported specialty beers form a growing sector of the American beer market. A-B has enjoyed considerable success with such brands as Bass Ale, Grolsch, Kirin and Tiger. Sales of Kirin in the U.S. have grown by 147% since A-B took control of distribution.

Using the brand name Czechvar to avoid clashes, Budvar has been on sale in 30 states for several years. But the deal with A-B will give the beer—which will continue to be labeled Czechvar—far wider distribution, turning it into a national brand.

Both sides were at pains to stress that the legal battles in other countries will continue. To prove the point, a few weeks after the American deal was agreed, the European Court of Legal Rights ruled that A-B cannot use the full Budweiser name in Portugal, upholding Budvar’s claim to the trademark.

Merger Mania

Nevertheless the deal in the U.S. has prompted many commentators to suggest not only that the legal battles could soon be a thing of the past but might also herald a merger of the two companies. Take a cold shower—nothing will happen for some time. The Czech brewery is still state owned. Coalition governments in the Czech Republic tend to fall apart quickly. There is no effective government in Prague at present and privatizing Budvar is not on the agenda.

Successive governments since the collapse of communism have made it clear Budvar will stay in state hands until a “suitable partner” is found. For “suitable partner,” read “anyone but Anheuser-Busch.” The Czechs are proud of Budvar. They feel strongly that, while A-B may have been brewing its Budweiser several decades before the Budvar brewery opened in 1895, the trademark Budweiser, meaning in German “of Budweis,” is a generic one that goes back to at least the 14th century. The older Citizens’ Brewery in the town now known as Ceské Budejovice also brews under the Budweiser name.

If and when Budvar is sold off by the state, it may remain a successful independent company. But the history of brewing in Central and Eastern Europe since the fall of communism shows that stockholders are open to offers. Global brewers have big check books. The biggest players in Czech brewing today are SABMiller, which owns Pilsner Urquell, along with Gambrinus and Kozel; and InBev, which controls Prague Breweries, best known for its main Staropramen brand.

It’s unlikely either group would be allowed to buy Budvar, as the sale would give one or other too big a stake in the Czech Republic. But the likes of Baltika—a consortium of Carlsberg and Scottish & Newcastle that is the biggest brewer in Russia—or Heineken might be keen to buy such an iconic brand as Budvar.

They would be deterred, however, by continuing legal wrangles between A-B and the Czech brewery. As well as taking on the brand, they would also have to pick up large lawyers’ bills as A-B fights for its trademark rights throughout the world.

There is only one giant brewery that could buy Budvar and end the legal battles at a stroke. You guessed it—Anheuser-Busch. As the captain of the Titanic observed, “stranger things have happened at sea.”

Back in the Czech Republic

Two weeks before the A-B and “Czechvar” deal was announced, I was in Prague for the annual awards given by the newspaper Pivni Kuryr—Beer Courier. The awards are the results of votes by the paper’s readers and Budvar has won the top prize more times than any other beer.

Beer lovers in the U.S. can get ready to drink a beer that is brewed from Moravian malt, Saaz hops and pure water—not a grain of rice to be seen—and which is lagered (cold conditioned) for 90 days. Enjoy!