The battle between a small brewer and one of the world’s bigger beer companies for the Budweiser name continues after negotiations collapsed, according to The Associated Press.
The legal struggle for worldwide rights to the Budweiser name has been waging in courts for 106 years. Budejovicky Budvar, which is owned by the Czech Republic, believes they should maintain exclusive global rights to the brand. Anheuser-Busch, on the other hands, feel they should be able to market its product whenever they see fit.
For a while, it seemed Budvar and Anheuser-Busch owner AB InBev were about to reach an agreement that would have effectively end the hundred-year battle. However, reports indicate that talks have collapsed at the last second.
“Budvar blocks the markets where AB InBev, due to its trading power, marketing and distribution potential, would likely gain significantly more,” analyst Karel Potmesil told the AP. “The dispute limits the development of the brands that the company considers the most valuable in the industry.”
According to Investor Place, Budvar says that giving up worldwide rights to the Budweiser name would effectively destroy its brand. As a result, the company has refused any deals with its competitor.
Budvar previously reached an agreement with Anheuser-Busch in 1939 which gave the North American company exclusive rights to the name in the US. However, the deal later broke down when both brewers attempted to expand into each other’s markets.
At present, Budvar has exclusive rights to the Budweiser name is over 60 different markets, most of which are located in Europe. Although AB InBev has continuously tried to wrench control away from the Czech company, Budvar has won 88 out of 124 lawsuits in the past 11 years.
MSN Money reports there are currently 61 lawsuits pending in 11 countries over the Budweiser name.
What do you think about the legal battle between Budejovicky Budvar and Anheuser-Busch? Which company do you think should have global rights to the Budweiser name?