Lion hands Corona Extra back to CUB

The country’s major brewer Lion will receive as much as AUD 300 million (USD 224 million) in compensation for the early termination of its contract to distribute a portfolio of AB-InBev beers, including Corona, Budweiser, Stella Artois and Becks. The popular brands are handed back to Carlton and United Breweries (CUB), the renamed Foster’s, which is currently owned by SABMiller.

The transfer of the brands out of Lion’s portfolio is a result of the takeover of SABMiller by AB-InBev.

SABMiller bought Foster’s for USD 12 billion in 2011, which resulted in AB-InBev giving its brands to Foster’s competitor Lion.

Lion had expected the loss of the Corona brand, which is Australia’s fourth-biggest selling beer with a 6 percent market share, but it will still be dire.

Kirin, the Japanese brewer that owns Lion, issued a statement on 27 June 2016, saying it had reached a deal to return the brands and expected to receive payments in the range of AUD 250 to 300 million. It had been notified by AB-InBev of the termination at the end of March 2016. The effective date of the termination is 30 September 2016.

The beers coming out of Lion’s hands include Corona, Budweiser, Stella Artois, Beck’s, Hoegaarden, Leffe, Pacifico Clara, Negra Modelo and Belle-Vue Kriek.