Budweiser Budvar ends distribution deal with Anheuser-Busch

The state-owned Czech brewery Budejovicky Budvar (Budweiser Budvar) on 3 July 2012 terminated its U.S. distribution deal with AB-InBev and transferred the rights to distributor United State Beverages based in Stamford, Connecticut.

In 2007, Anheuser-Busch – now AB-InBev – agreed to distribute Budvar’s Czechvar lagers in the United States. Because of trademark issues, Budvar has exported its lager to the U.S. under the Czechvar brand since 2001.

Originally, the move 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 said after Anheuser-Busch was taken over by InBev in 2008, it lost interest in importing Czechvar and didn’t meet the imports goals for 2011.

Moreover, at the end of last year, AB-InBev purchased Budjovicky Mestansky Pivovar (BMP), the smaller of two breweries from the Czech town of Ceska Budejovice. Both Budweiser Budvar and BMP have long claimed that they – and not AB-InBev – own the right to sell a beer called Budweiser on world markets. No purchase price was disclosed, and the only assets AB-InBev bought were BMP’s Budweiser trademarks, in a move to pacify this front.