ST. LOUIS -- After nearly a century of disagreements in certain parts of the world over rights to the Budweiser name for their beers, Anheuser-Busch and Czech brewer Budejovicky Budvar (BBNP) have formed an alliance in which A-B will become the U.S. importer of Czechvar Premium Czech Lager, the two brewers said.
The agreement gives Czechvar, currently sold in 30 states, access to A-B's marketing and sales expertise and broad U.S. distribution network. It gives A-B another European import as part of an aggressive push into high-end beer categories that [image-nocss] has led to alliances with Grolsch, Tiger, Kirin and most recently InBev, which added Stella Artois, Beck's, Bass Pale Ale and other beers to its import portfolio.
The agreement does not impact 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.
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, said August A. Busch IV, president and CEO of Anheuser-Busch Cos. Inc. For Anheuser-Busch, it also represents an opportunity to enhance our import portfolio with a super-premium Czech import.
The imported Czechvar beer will continue to be brewed at the BBNP brewery in Ceske Budejovice, Czech Republic.
Our business agreement will particularly please all connoisseurs of imported beers in the USA. Experience of many brewers' generations, who have brewed beer in our town for more than 700 years, lies behind our premium lager, said BBNP's CEO, Jiri Bocek. At the same time, the agreement represents a historical turning point between our companies. We have managed to move away from discussions between lawyers and towards a practical dialogue, which is going to be beneficial to both sides. Our corporation has therefore gained the best importer in the USA.
Czechvar is a super-premium light lager. A 90-day maturing period and use of ingredients including Saaz hops, assorted Moravian malt barley and pure spring water gives this beer its characteristics. Czechvar features a thick head, distinctly golden color and full aroma.
The brand is available in individual 330 milliliter bottles, in six- and 12-packs of 330 milliliter bottles, in a 500 milliliter bottle and on draught.
The agreement will broaden Czechvar's U.S. distribution by giving the Czech brewer access to the A-B network of nearly 600 independent wholesalers. The European import is an important addition for A-B wholesalers as imported beer is one of the fastest-growing segments of the U.S. beer industry.
The agreement was effective January 5. Terms were not disclosed.
BBNP brewery, based in Ceske Budejovice, Czech Republic, has long been one of the most successful Czech companies in the food and drink industry. Thanks to its gradual and goal-oriented expansion into foreign markets and the strengthening of sales on the domestic market, BBNP managed to achieve a significant position in the beer market both in the Czech Republic and abroad. Based on the volume of exported beer, the original Czech premium lager brewed by BBNP is one of the best-selling Czech beers abroad, the company said. BBNP exports nearly half of its output to more than 50 countries on five continents.
Based in St. Louis, A-B brews Budweiser and Bud Light. It also owns a 50% share in Grupo Modelo, Mexico's leading brewer, and a 27% share in China brewer Tsingtao.
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