Heineken and Anheuser-Busch in licensing agreement
What seems to work well in Italy and Russia is now being tried out in Panama. Under the eyes of rival SABMiller, Heineken has begun to brew and sell Budweiser under license from Anheuser-Busch.
After the deals in Italy and Russia the novelty factor has worn off. But it is still surprising to what extent brewers the world over practice an open relationship. In the U.S. beer market Heineken and Anheuser-Busch may be arch-rivals, yet in Italy, Russia and now Panama they are in bed with each other. Since January this year Heineken’s subsidiary in Panama, Cervecerias Baru-Panama, has been brewing Budweiser.
Panama is not a huge market: only 1.7 million hl of total beer sales. Yet beer consumption is 58 litres - and rising. In 2006, the beer market grew by 5.6 percent, fuelled by strong GDP growth, says SABMiller. Its local subsidiary,
Cerveceria Nacional, increased its market share to 84 percent, according to SABMiller, and its brands Atlas and Balboa contributed 7 percent to volume growth.
Heineken has been a relative newcomer to this market. In 2002 it spent USD 56 million on Cervecerias Baru-Panama in which it now holds 75 percent and its partner, the Costa Rican brewer Florida Ice and Farm Company, 25 percent.
Further down south, in Colombia, Heineken and Anheuser-Busch have also sealed a partnership. Since February, Heineken International de Colombia S.A. has been importing, distributing and marketing Budweiser in Colombia.
