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Anheuser, Czech rival reach joint distribution deal

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From the Associated Press

There’s a thaw in the century-old fight between Anheuser-Busch Cos. and Czech brewer Budejovicky Budvar. The companies announced a joint distribution deal Monday even as they vowed to continue their international legal fight over the Budweiser trademark.

St. Louis-based Anheuser-Busch said it agreed to distribute Budvar’s Czechvar Premium Czech Lager, which is currently sold in 30 states. That means the Czech company will get access to Anheuser-Busch’s unrivaled network of 600 independent wholesalers.

The nation’s biggest brewer is making nice with Budvar as part of its plan to add more high-end imported beers to its portfolio. The maker of brands such as Budweiser, Michelob and Bud Light has seen sales flag as consumers turn to craft beers and foreign beers.

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Over the last year, Anheuser-Busch has formed partnerships to distribute brands such as Grolsch, Kirin and Stella Artois.

Although domestic U.S. beer sales grew less than 2% over the last year, import beer sales surged 12.5% in the 10 months of 2006 that have been tallied, according to industry newsletter Beer Marketer’s Insights.

It’s too early to tell how successful Anheuser-Busch’s import strategy will be, said Benj Steinman, publisher of Beer Marketer’s Insights.

Anheuser-Busch and Budvar agreed that their U.S. distribution deal, which became effective Friday, will have no effect on their legal dispute.

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