China: Anheuser-Busch Companies has blocked the entry of Budějovický Budvar into China

The U.S. brewing giant Anheuser-Bush appealed a decision by the Beijing Intermediate People’s Court’s, which allowed the Czech brewer to register the trademark “Budějovický Budvar” in China, where Anheuser-Busch has registered “Budweiser” and “Bud,” Czech Business Weekly posted August 11.

"We believe the Czech Brewer’s trademark registration would infringe on our world famous brands,” said Stephen J. Burrows, CEO and president of Anheuser-Busch International in an e-mail. “The Anheuser-Busch trademarks for Budweiser and Bud remain valid and unchallenged in China,” he said.

Since 1995, A-B has made “a significant investment” in the Budweiser brand in China and will continue to “aggressively protect” its trademarks from any infringement, Burrows said. China is one of the most important markets for A-B outside the United States. Budvar couldn’t be reached for comments August 11.

The dispute in China has lasted since 1997. Last month, the Chinese court ruled that Budějovický Budvar can’t be confused with Budweiser and “Bud“ trademarks, according to Budvar’s statement issued on July 12. “The court’s final ruling is an important step toward the definite registration of our trademarks. We significantly reached the point where the Chinese market will be open for us,” said Petr Samec, the Czech brewery’s public relations manager, in the statement. “The Chinese market is considered a very perspective one. It’s globally the largest and at the same the fastest-growing beer market in the world.”

The battle of Budweiser began over a century ago, and Anheuser-Busch (A-B) and Budějovický Budvar still have some 40 lawsuits pending today; but A-B International CEO and President Stephen J. Burrows says there’s still room for cooperation, Czech Business Weekly posted August 14.

U.S. brewing giant Anheuser-Busch Companies has battled with the state-owned brewery Budějovický Budvar over the Budweiser trademark for nearly a century. Over the past 15 years Stephen J. Burrows, CEO and president of Anheuser-Busch International, has been periodically involved in talks with Czech governments regarding Budvar’s privatization. In July he told CBW that A-B is ready to open a new discussion about forming a partnership with Budějovický Budvar that could finally settle the dispute.

The two rivals, who both claim the historical right to use the names Budweiser or Bud for their beer, are involved in about 40 lawsuits worldwide.

A-B started using the Budweiser name in 1876, some 19 years before the Czech brewery opened in the South Bohemian town of České Budějovice — originally called Budweis in German. Budvar’s representatives say that Budweiser refers to the name of the town where the beer has been brewing since the 13th century.

Amid the trademark battle, the largest U.S. brewery has been expanding its flagship, Budweiser beer, under the Bud trademark to Russia, Hungary and Poland. These countries are also among Budvar’s biggest exports markets. In the U.S., Budvar must sell its beer under the brand name Czechvar.

A-B has the right to sell Budweiser or Bud in the entire European Union except for four countries: the Czech Republic, Slovakia, Germany and Austria. The EU represents 31 percent of A-B’s international beer sales.

Burrows told CBW in his St. Louis, Missouri office, where A-B is headquartered, that the former Soviet Union countries and Eastern Europe are growing beer markets where A-B wants to increase its activities. A-B’s Budweiser is the world’s biggest selling beer.

A-B’s second quarter 2006 net income increased 7.4 percent to $637.8 million (Kč 14 billion, €497 million) compared to the same period in 2005. Budvar’s annual gross profit in 2004 was Kč 309 million (€10.9 million).

Budvar exports its lager to around 50 countries, including Australia, Japan, Russia and Canada.
Budvar and A-B have been fighting over the Budweiser and other trademarks for nearly a century. Budvar has 380 trademarks registered in more than 100 countries worldwide. The brewer is currently involved in about 40 legal disputes with A-B and has 70 administrative procedures on the desks of patent offices.

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