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. 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 almost 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."
Budvar commented: "We have moved away from discussions between lawyers towards a practical dialogue, beneficial to both sides. Our corporation has gained the best importer in the USA."
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 that 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.