Budweiser gets a new deal
Kirin Brewery Co. and Anheuser Busch Co. signed a new contract which allows both brewers to share equally in the profits from Japanese sales of Budweiser. The contract is somewhat atypical as licensees usually receive a much smaller share in licensed production. Anheuser-Busch made the concession to give Kirin a stronger incentive to promote the product and increase sales. The original contract between Kirin and Anheuser-Busch dates back to1993 but will be liquidated by March due to mounting debt. Kirin Brewery Co. expects to post ¥64 billion in pre-tax profits for the year ended December 1999, up 6 per cent on the previous year. The increase, however, is mainly attributed to the company’s restructuring efforts. Sales are expected to drop about 1 per cent to ¥1,130 billion..
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