E-Malt.com News article: 2836

Australia: Belgian brewing force, Interbrew and Lion Nathan Australia (Lion Nathan) have entered into an exclusive long term agreement in Australia for Lion Nathan to brew, distribute and market Interbrew's global premium beer, Beck's®, in Australia, Interbrew announced on 24 June 2004. The agreement supersedes an existing arrangement, which has been in place for more than three years.

Beck's® is a key brand for Lion Nathan in the fast growing premium segment, which now represents over 9 per cent of the Australian beer market. The agreement follows strong growth for Beck's® in Australia both on and off premise under Lion Nathan's stewardship.

Beck's®, Interbrew's global premium brand, is the number 1 German beer in the world and the fastest growing international brand. In the first quarter of 2004, Beck's® organic volume grew by more than 19 per cent worldwide. This German beer is sold in over 120 countries, with global sales volumes reaching 5 million hl 2003.

Commenting on the new arrangement, Lion Nathan Australia's Managing Director Andrew Reeves said, "International brands have played an important role in the growth of the premium segment and we are proud of the progress we have made in bringing this outstanding brand to Australian beer drinkers."

"Given this success, we were keen to secure the future of the brand in Australia. This important agreement enables Lion Nathan to develop and implement a long-term strategy for Beck's® in Australia, which will fully realize the brand's potential. Beck's® offers significant growth prospects and we are delighted with the opportunity to take the brand to the next level," Reeves continued.

"As the number of beers in the average beer drinker's portfolio increases, it is essential that we deliver a broad choice of beers, including local, national and international brands. This agreement is a key component of the Lion Nathan premium brand strategy going forward," added Reeves.

Interbrew Senior Vice President Global Exports & Licenses, Tony Desmet said, "We are delighted with the work Lion Nathan has done on Beck's® for the past three years. This agreement further strengthens the already strong relationship we have in Australia, New Zealand and the United Kingdom. We are confident that the Lion Nathan-Interbrew partnership will continue to deliver significant mutual benefits as Beck's® grows in Australia."

Beck's® is instantly recognisable by its crisp, fresh palate and slightly bitter aroma. These characteristics have made Beck's® a world-class brand.

Interbrew is a publicly traded company (INTB - Euronext) based in Belgium. The company's origins date back to 1366, and today it is one of the leading global brewers. Interbrew's strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting its consumers first. Interbrew has a portfolio of more than 200 brands, including Beck's®, Stella Artois®, Leffe®, Hoegaarden®, Staropramen® and Bass®. It employs nearly 50,000 people, and runs operations in 21 countries across the Americas, Europe and Asia Pacific. In 2003, the company realized a net turnover of more than 7 billion euro.

Recently, Interbrew and Companhia de Bebidas das Américas (AmBev), the world's fifth-largest brewer, agreed to establish InterbrewAmBev, the world's premier brewer, with a global market share of 14%. This combination will have an unparalleled global platform, capturing the number one or number two position in twenty key beer markets-more than any other brewer. InterbrewAmBev will focus its activities on Beck's®, Brahma® and Stella Artois®, its three global flagship brands.


25 June, 2004