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26 April 2006

No two ways about it

Following the arbitration court’s ruling in March 2006, Mexico’s Corona beer brewer Modelo has the best part of a year to find a new partner in the U.S. who can help it squeeze more profits from its already-booming exports to the East Coast states. Early in March an arbitrator ruled in Modelo’s favour in a contract dispute, saying it could terminate a deal with its long-standing U.S. importer, the Gambrinus Co., at the end of 2006. Since 2004 San Antonio-based Gambrinus Co has been trying to block the termination clause in its contract with Modelo. Modelo, half owned by Anheuser-Busch, works with another U.S. importer, Constellation Brands, in other parts of the U.S. Thanks to Gambrinus’ and Constellation’s efforts, Modelo’s exports increased 12..

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