New Zealand & Belgium: InBev beers to be sold by Lion Nathan in New Zealand

InBev, the world’s largest beer company by volumes, announced on August 1, 2005 that it has signed a distribution agreement with Lion Nathan NZ (LNNZ) which gives LNNZ the right to import, distribute and market InBev’s international specialties Leffe® and Hoegaarden® until 2014.

The distribution agreement follows the success LNNZ has had with InBev’s premium portfolio of Belgian beer brands for several years. It reaffirms the commitment the two companies made to each other in 2002, when they signed a ten-year license contract giving LNNZ the right to brew, distribute and market Stella Artois®, one of InBev’s global flagship brands and one of the fastest growing premium beers in the New Zealand market.

New Zealand beer drinkers’ consumption tastes are changing – they are becoming more experimental, seeking out new experiences and taste profiles that fall outside the traditional mainstream beer territory.

Belgian beers, in particular, have enjoyed a massive surge in popularity over the past few years. InBev’s specialty brands like Hoegaarden®, the white beer, and the Leffe® range of Abbey beers have been growing successfully in the past years, especially in their export markets.

“The growth of our Belgian beer portfolio is outstanding,” says Peter Kean, Managing Director for Lion Nathan New Zealand. “We are delighted to have taken our relationship with InBev to another level by formalizing our commitment to several of InBev’s premium brands. We are committed to the expansion of the premium segment in New Zealand and have no doubt that the exceptional performance of Stella Artois®, Hoegaarden® and Leffe® will continue as New Zealand consumers’ demand for specialty beers increases.”

“InBev is very pleased to further develop its premium portfolio in New Zealand together with its long-term partner Lion Breweries New Zealand,” said Ben Cheng, Vice President, Export & Licenses, Asia Pacific.

Central to the success of Stella Artois®, Hoegaarden® and Leffe® is the Belgian Beer Café® concept, developed by InBev in 1985 as a shopfront for its range of specialty Belgian beers. InBev and LNNZ worked together to bring the concept to New Zealand where there are now eight Belgian Beer Cafés®. Each outlet showcases the draught beer pouring ritual developed in Belgium in the 18th Century when beer was first poured into glass.

The ritual is crucial to establishing the theatre and quality associated with the Belgian Beer Café® experience. New Zealand has embraced Belgium’s high standards and traditions to such a degree that the 2002 World Draught Master Championship was awarded to Simon McGoram of the De Post Belgian Beer Café® in Mt. Eden, Auckland, despite strong competition from elite bar staff from 20 countries from around the world.

The World Draught Master title is an accolade of which LNNZ and InBev are extremely proud because it demonstrates that when it comes to finding the world’s best Belgian Beer experience, you’ll find it in New Zealand.

Leffe® is the world’s most famous Belgian Abbey beer. Already in the 13th Century Abbey beer was brewed by the fathers of the Abbey of Notre Dame de Leffe. Leffe® is a rich, specialty beer brewed to honour an age-old tradition and available in four wondrous varieties: Leffe Blond® (6.6% ABV), Leffe Brown® (6.5% ABV), Leffe Tripel® (8.4% ABV), Leffe Radieuse/Vielle Cuvée® (8.2% ABV) – each one with its own distinctive flavour and character.

Hoegaarden is the birthplace of Belgian White beer. Traces of a brewing tradition in the village of Hoegaarden, one hour drive from Brussels, have been found dating back to the year 1445. Thanks to its authentic and unconventional brewing process, using ingredients like orange peel and coriander and not filtering the beer to keep it as originally intended, Hoegaarden® (4.9% ABV) is naturally cloudy, with a citrus bouquet and a very refreshing tangy flavour.

InBev is a publicly traded company (Euronext: INB) based in Leuven, Belgium. The company's origins date back to 1366, and today it is the leading global brewer by volume. InBev’s strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting consumers first. InBev has a portfolio of more than 200 brands, including Stella Artois®, BRAHMA®, Beck’s®, Skol®—the third-largest selling beer brand in the world—Leffe®, Hoegaarden®, Staropramen® and Bass®. InBev employs some 77,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2004, InBev realized a net turnover of 8.57 billion euro (including four months of AmBev). For further information visit www.inbev.com.

Lion Nathan is an Australasian premium alcoholic beverages company with operations in Australia and New Zealand. A publicly traded company (ASX/NZX: LNN) with assets of $4.3 billion, Lion Nathan generates strong stable earnings and cash flow from its Australian and New Zealand beer businesses. Its portfolio of beer brands includes Tooheys, XXXX, Hahn, West End, Emu, Swan, James Squire, Lion, Speight’s, Mac’s and Waikato. Lion Nathan also has a small premium wine business formed through the combination of leading Australian and New Zealand fine wine producers Petaluma, Banksia and Wither Hills. In addition to its beer and wine businesses, Lion Nathan is involved in a number of related businesses. The Company’s strategic focus is to maximize the performance of existing core businesses in order to become the leading alcoholic beverages company in Australasia. Lion Nathan employs 2400 people and in 2004, had an operating cash flow of $274 million. For further information visit www.lion-nathan.com.au.

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