Official: Brewery may be put up for sale
PRAGUE, Czech Republic --Czech brewery Budejovicky Budvar NP, which has been fighting a centurylong legal battle with U.S. beer giant
Agriculture Minister Petr Gandalovic, whose ministry is in charge of the state-owned company, said Wednesday that the government would work to prepare Budvar for privatization.
The process would depend on the outcome of the trademark dispute with Anheuser-Busch, he said.
"Everything is, of course, connected with the solving of the trademark dispute," Gandalovic said in remarks sent to The Associated Press. "Nevertheless, we will work together with the trade and finance ministries to prepare (Budvar's) privatization."
"It is not on the agenda now, but the Cabinet will definitely discuss it," Gandalovic said.
Until now, various Czech governments have said there were no plans to privatize the brewer, which has been battling with Anheuser-Busch -- the largest brewer in the United States -- for the exclusive rights to the Budweiser name.
On Tuesday, Trade Minister Martin Riman suggested that Budvar could be sold at the same time as Prague's Ruzyne International airport, the state-run airline CSA and the Czech Post to help the government cover a fiscal budget gap.
Riman put the brewery's value at 20-30 billion koruna (euro712 million-euro1.1 billion; US$935 million-US$1.4 billion).
Gandalovic refused to comment on the company's worth, saying only that any sale would "have to be coordinated with the trademark dispute" so as to maximize the price.
It was not immediately clear if the legal battle would be wrapped up anytime soon, but the two rivals recently indicated may be finding common ground.
The St. Louis-based brewer agreed in January to distribute Budvar's lager Czechvar in the United States, giving the Czech company access to Anheuser-Busch's unrivaled network of 600 independent wholesalers. The brand is now sold in 30 U.S. states.
Budvar exports its production to 50 countries worldwide, and since 2001 has exported its beer to the U.S. under the name Czechvar.
The brewers stressed this partnership would have no affect on their ongoing legal dispute, but the U.S. company's CEO August Busch IV called the agreement "a meaningful step for two great brewers to form a relationship that is good for both of our businesses."
Budvar Chief Executive Jiri Bocek said then that the two companies finally had "managed to move away from discussions between lawyers and toward a practical dialogue, which is going to be beneficial to both sides," describing the development "a historical turning point between our companies."
The Czech brewery was founded in 1895 in Ceske Budejovice -- a town called Budweis by the German-speaking people that populated the area at the time. Beer, which has been brewed there since 1265, would have been known as a Budweiser.
Anheuser-Busch launched its own U.S. Budweiser brand in 1876, picking the name because it evoked German brewers but was still easy for U.S. consumers to pronounce.
