E-Malt.com News article: 1536

Czech brewer Budejovicky Budvar, will not be privatised until at least 2006, Czech press reported on September 8. “The sale of the fully state-owned brewer was out of question during this cabinet's term, which expires in June 2006,” Finance Minister Bohuslav Sobotka, in charge of the Czech privatisation programme, said. “A drawn out dispute between the Czech company and Ansheuser-Busch, the world's biggest brewer, over the rights to the Budweiser name ruled out Budvar's privatisation any time soon.”

In June, Sobotka said the sale of Budvar might be possible as part of the government's campaign to raise money for badly-needed infrastructure investment. "So far, (our) analyses do not speak in favour of Budvar's privatisation in the nearest future," Sobotka said.

Budvar's value is estimated at around three billion crowns ($110 million) but the rights to the Budweiser brand, which the Czech brewer can exclusively use in many countries, is thought to be worth 10 times that amount, Reuters said.

Anheuser-Busch had been expected to try to buy Budvar to stop a constant flow of litigation with its small Czech rival over who can sell beer as the real Budweiser. Ceske Budejovice, the brewery's location, is known in Germany as Budweis and many, though not all, courts have backed Czech assertions that it is the home of the Budweiser trademark.

Budvar is the third-largest Czech beer maker. Its annual output fell last year to 1.21 million hectolitres.


09 September, 2003