Budvar Ends Distribution Agreement w/Anheuser-Busch & Retains Name In UK

imageFrom Yahoo Finance:

PRAGUE (AP) -- State-owned Czech brewery Budejovicky Budvar NP says it is terminating a distribution deal with its U.S. archrival Anheuser-Busch.

In 2007, Anheuser-Busch — now Anheuser-Busch Inbev — agreed to distribute Budvar's Czechvar lager in the United States.

The move originally helped Budvar, which has been fighting a long legal battle with Anheuser-Busch over the use of the "Budweiser" brand, boost U.S. sales.

But Budvar says after Anheuser-Busch was taken over by Belgian brewer InBev in 2008, it lost its interest in importing Czechvar and didn't meet the imports goals for 2011.

Budvar said Tuesday that United State Beverages based in Stamford, Connecticut will take over Czechvar's U.S. distribution Saturday.

Budvar has since 2001 exported its lager to the U.S. under the name Czechvar due to trademark issues.

PRAGUE (AP) -- State-owned Czech brewery Budejovicky Budvar NP says a British court has rejected Anheuser-Busch's request to have Budvar's Budweiser trademark declared invalid, in the latest ruling in a long legal battle over the brand name.

Budvar said Wednesday the ruling by Britain's Court of Appeal, which is final, means that unlike other markets, Anheuser-Busch and the Czech brewer can both continue to use the Budweiser trademark in Britain.

The decision is in line with last year's ruling by EU's Court of Justice in Luxembourg.

Both brewers were granted the right to use it in 2000 after a ruling that British beer drinkers were aware of the difference.

The legal battle over the Budweiser trademark has not been affected after Anheuser-Busch was taken over by Belgian brewer InBev in 2008.

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