Anheuser-Busch teams up with Heineken to distribute Bud in Russia

07/03/06 Anheuser-Busch International, Inc. and Heineken Russia have reached a licensing agreement that will allow Heineken to brew, sell and distribute Anheuser-Busch's flagship brand under the Bud trademark in Russia. The brewing will begin in the next few months at Heineken Brewery LLC in St. Petersburg – one of ten breweries that Heineken operates in Russia. Bud will be available in 330-ml and 500-ml bottles as well as 500-ml cans. The brand will be priced similar to other premium international lagers.

Bud is brewed using only the finest all-natural ingredients including barley malt, rice, hops, yeast and water. Bud will be available in high-end bars and restaurants in major Russian cities including Moscow and St. Petersburg. The brand also will be available in off-trade and key accounts in these markets.

The Anheuser-Busch and Heineken partnership in Russia is not the first brewing and distribution agreement the two international brewers. Heineken also brews Bud in Italy and distributes the brand in Poland and the Canary Islands.

Based in St. Louis, Anheuser-Busch is one of the world's largest brewers and is the No. 1 brewer in the United States with a 49 percent market share. In addition to the United States, Anheuser-Busch has breweries in the United Kingdom and China; holds a 50 percent share in Grupo Modelo, Mexico's leading brewer; and has equity investments in Tsingtao, the leading brewer in China, and Compania Cervecerias Unidas Argentina.

Heineken Russia embodies a group of 10 non-listed companies located in different parts of the Russian Federation. Heineken NV acquired the first brewery in 2002 in St. Petersburg (Heineken Brewery LLC), complementing its portfolio with the well-known national brands such as Bochkarev, Ohota and licensed Bavarian Lowenbrau.  Local production of Heineken and Buckler beers started in 2003. In July 2005, Guinness Foreign Extra Stout was launched, together with exclusive distribution contract of Draught Guinness and Kilkenny.  In December 2005 Heineken Brewery LLC launched Amstel brand in St Petersburg.  Other breweries that joined Heineken Russia 2004-2005 are: Volga brewery in Nizhni Novgorod, Shikhan brewery in Sterlitamak (Bashkortostan republic), Heineken Brewery Siberia in Novosibirsk, Patra brewery in Yekaterinburg, Stepan Razin brewery in St. Petersburg, Baikal brewery in Irkutsk, and Ivan Taranov Breweries (ITB) located in Kaliningrad, Novotroitsk and Khabarovsk.  Altogether there are 36 brands in the existing brand portfolio of Heineken Russia.  The acquisitions provided the company with a strong third market position in Russia. Heineken Russia is employer of over 9500 people.

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