E-Malt.com News article: 585

Heineken Italia and Interbrew have reached agreement to terminate, by common consent, the license and distribution agreements which gave Heineken Italia the right to produce and/or distribute Interbrew's Belgian brands and the Labatt range in the Italian market since 1995, Interbrew reported on January 31, 2003. As a result, Interbrew will regain full control of its premium and speciality brands and offer its comprehensive brand portfolio in the Italian market as of 1 March 2003, while Heineken Italia will launch its own exclusive range of specialty beers for the Italian market.

“This transaction concerns the return of all rights to Interbrew's Belgian brands, as well as the Labatt range, in the Italian market, for a total consideration of 19.5 Mio EUR. It also further strengthens Interbrew, The Worlds Local Brewer©, as the number 1 importer of beers in Italy and allows the company to capture the full margin of its business in the Italian market.

Heineken has been managing the production and distribution in the Italian market of Interbrew's Stella Artois® and its Belgian speciality brands since 1995 and of the Labatt range since 1996. With a sales volume of 170.000 hectolitres in 2001, Stella Artois® is an important premium brand in the Italian import segment. Within the total Italian beer market (16,7 million hectolitres in 2001), the import segment represents 26% and has been the fastest growing beer segment in Italy over the last 10 years.

Since its recent acquisitions in the UK (Bass Brewers) and Germany (Beck & Co), Interbrew has achieved a stronger position in the Italian market, with leading brands such as Beck's® and Tennents®. Starting 1 March 2003, Interbrew will complete its own portfolio in Italy by regaining full control of its international portfolio brands. With Beck's®, Tennent's®, Stella Artois®, Hoegaarden®, Leffe® and Labatt®, Interbrew has a strong and powerful product offering which can successfully compete with the leading players in Italy.”

"Our brands in Italy can now be leveraged on a broader platform, allowing us to grow the brands substantially faster than in previous years." said Dieter Ammer, Regional President, Germany, Southern Europe & Export. "It's a win-win situation. The deal makes a lot of sense not only from a strategic, but also from a financial point of view."


31 January, 2003