The 106-Year Budweiser Battle You Didn’t Know Existed

A small Czech brewer is facing off against a multinational giant

   

Beer 225x300 The 106 Year Budweiser Battle You Didn't Know ExistedNegotiations to resolve a dispute over one of beer’s biggest names have collapsed without a deal.

Talks between Budejovicky Budvar, a brewing firm owned by the government of the Czech Republic, and AB InBev‘s (NYSE:BUD) U.S. subsidiary, Anheuser-Busch, have failed to reach an agreement about who has exclusive global rights to the Budweiser name, the Associated Press noted.

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Both parties have issued and rejected settlement offers. Budvar says conceding rights to the Budweiser name would result in the end of its brand.

The legal dispute over the Budweiser name dates back 106 years. In 1939, Budvar and Anheuser-Busch made a deal that gave the American company the right to use the name in North America. However, as exports to overseas markets rose, the dispute surfaced.

Despite is small size, Budvar has won 88 of 124 lawsuits against Anheuser-Busch over the past 11 years. Budvar currently holds the exclusive rights to the Budweiser name in 68 countries, mostly in Europe, including critical markets like Germany.

To get around its lack of rights to the Budweiser name, InBev markets its beer under the Bud name in a number of countries, while Budvar sells its beer as Czechvar in North America. In the the U.K., however, the two companies share rights to the name.

Shares of AB InBev rose fractionally in Tuesday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/the-106-year-budweiser-battle-you-didnt-know-existed/.

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