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Budvar's Beer Exports To US Rise 7 Percent

The Associated Press

PRAGUE (AP) — State-owned Czech brewery Budejovicky Budvar NP — which has been fighting a long legal battle over the Budweiser brand — said Tuesday it boosted its exports to the United States by 7 percent in 2008 due to a distribution deal with its U.S. archrival Anheuser-Busch.

Budvar exported a total of 11,791 hectoliters (311,494 gallons) of beer to the United States in 2008, compared with some 11,000 hectoliters (290,598 gallons) the previous year, the brewer said.

"We're delighted by the results," Budvar spokesman Petr Samec said. "It's a decent growth," he said.

"The distribution is functioning very well."

Two years ago, Anheuser-Busch — now Anheuser-Busch Inbev after a merger deal — agreed to distribute Budvar's Czechvar lager in the United States, giving the Czech company access to its unrivaled network of 600 independent wholesalers.

Although Budvar considers itself the maker of the original Budweiser, it has since 2001 exported its lager to the U.S. under the name Czechvar due to trademark issues.

Budvar fought for years with brewer Anheuser-Busch in a number of countries over use of the famous Budweiser brand, to which both companies claim a historical right. Anheuser-Busch was taken over by Belgian brewer InBev last year to form Anheuser-Busch InBev, the world's largest beer company. Budvar said the deal did not affect the legal battle.

Budvar boosted its annual production by 4.5 percent to 1.312 million hectoliters (34.7 million gallons) despite global economic problems last year but exports were down 1 percent at 581,522 hectoliters (15.4 million gallons). Budvar exported its beer to 54 countries in 2008.

The Czech government began a process that could lead to Budvar's eventual sale. It's not clear when that could happen.