Budweiser enemies sign landmark deal
The brewing industry is reeling at the news that US giant Anheuser-Busch has formed an alliance with long time adversary Budejovicky Budvar to import the Czech brewer's beer into the North American market.
For nearly a century, the two brewers have fought legal cases around the world over the right to use the Budweiser name.
We have managed to move away from discussions between lawyers towards a practical dialogue A spokesman for Budvar.
The agreement gives Budvar, which has to sell its beer under the name of Czechvar in the US, access to A-B's marketing and sales operations as well as their network of nearly 600 independent wholesalers.
Currently, Czechvar is sold in 30 states.
A-B president and chief executive officer August Busch commented: "After years of differences, this is a meaningful step for two great brewers to form a relationship that is good for both of our businesses. For Anheuser-Busch, it also represents an opportunity to enhance our import portfolio with a super-premium Czech import."
A spokesman for Budvar said: "We have managed to move away from discussions between lawyers towards a practical dialogue, which is beneficial to both sides. Our corporation has therefore gained the best importer in the USA."
If you compare the relative positioning of AB and Budvar it rapidly becomes clear that they need us much more than we need them Tony Jennings, CEO of BudvarUK.
Tony Jennings, CEO of BudvarUK, said: "The agreement is restricted to North America where there will be no mention of Budweiser Budvar only Czechvar, which will continue to be brewed at source and in every respect Budweiser Budvar, which is and will remain state owned, keeps control of the brand. Also if you compare the relative positioning of AB and Budvar it rapidly becomes clear that they need us much more than we need them.
"I think the more perceptive commentators are going to spot this; indeed this AB- Budvar deal should be regarded as a paradigm for the future of the global beer business. That is to say this is the first deal of its kind that recognises the shift amongst beer drinkers worldwide to specialist brews with real provenance and heritage alongside the swift decline in mass produced brewed under-licence brands."
The move is the latest in A-B's strategy of importing foreign beers. It already has Grolsch, Tiger, Kirin and InBev products in its portfolio.
The agreement does not impact on existing litigation or trademark disputes between the two brewers in other countries, and they have agreed the partnership cannot be used to support either side in any trademark cases.
Some industry observers believe the agreement may be part of a softening-up operation that could lead the Czech government, which owns Budvar, into selling the brewer or turning it into a private company.
