E-Malt.com News article: 3172

USA: InBev announced on 1 September 2004 that Labatt USA and Beck’s North America will combine operations beginning September 1, 2004, forming a single, unified organization in the U.S. for distribution of the world’s leading premium beer brands. The two companies are wholly owned subsidiaries of InBev, the world’s #1 brewer by volume.

The combination of Labatt USA and Beck’s North America follows the completion of the agreement between InBev and Fomento Economico Mexicano SA de CV (FEMSA) to unwind their joint venture in the U.S., and the closing on August 27, 2004 of the transaction in which Interbrew and AmBev successfully combined to form InBev.

InBev USA will be a completely re-engineered company built for long-term growth in the premium segment of the U.S. beer market. The company will focus on its high-profit international brands, including Stella Artois®, the best-selling Belgian beer in the U.S.; Beck’s®, the country’s #1 German beer, and Bass®, America’s leading English import. InBev USA will triple its investment in Stella Artois® in 2005 to support full national distribution, increase its spending on Beck’s® by more than 50 percent over the next three years, and continue its heavy investment to secure the position of Bass®. As the leading supplier of imported draught beer in the U.S., InBev USA will also continue to bring its draught expertise to bars and restaurants throughout the country.
InBev USA is also exploring the potential for introducing Brahma®, the popular Brazilian beer that is one of the world’s top 10 brands.

Simon Thorpe, President and Chief Executive Officer of Labatt USA since 2003, has been named President and CEO of InBev USA. Tom Cardella, formerly President and CEO of Beck’s North America will lead InBev USA’s restructured sales organization as Vice President, Sales.

InBev’s CEO, John Brock, commented: "This is a promising first step towards achieving our very ambitious business objectives for the U.S., one of our key markets. The unified distribution system will enable us to grow aggressively our premium brands, including Brahma®. We have the right structure in place and, more importantly, the people to make it happen. InBev USA will be a major contributor to our success in the Americas."




02 September, 2004