Anheuser Busch and Budejovicky Budvar reach agreement over Budweiser

The first thaw has come in the long-running dispute between Anheuser Busch and Budejovicky Budvar over the Budweiser trademark. The wrangling continues in many international markets, but the US brewer has now become the importer of the Czech lager throughout the US. Czechvar Premium Czech Lager (as Budweiser Budvar is known in the US) is currently distributed in 30 states, but this new deal will allow it access to Anheuser Busch’s countrywide distribution network, as well as marketing and sales expertise.

Ongoing trademark litigation in other countries between the two companies will not be affected by the deal. This move is part of Anheuser Busch’s recent focus on high-end, imported beers, which most recently saw a deal struck with InBev late last year, making it the exclusive importer of brands such as Stella Artois and Becks.

August A. Busch IV, president and CEO of Anheuser-Busch, explained: “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.” He added that the deal “also represents an opportunity to enhance our import portfolio with a super-premium Czech import”. The beer will continue to be brewed at source in the Czech Republic.

According to Tony Jennings, CEO of BudvarUK, “this is simply a change in Budvar’s distribution tactics on the North American market, a market which has shown an enormous growth in interest in speciality beers.” He added that “if you compare the relative positioning of Anheuser Busch and Budvar it rapidly becomes clear that they need us much more than we need them.”

Budejovicky Budvar’s CEO, Jiri Bocek, explained, “we have managed to move away from discussions between lawyers and towards a practical dialogue, which is going to be beneficial to both sides.”

© db 10 January 2007