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A-B Adds a Tiger to Its Imported Beer List

Posted on: Tuesday, 14 March 2006, 12:00 CST

By Gregory Cancelada, St. Louis Post-Dispatch

Mar. 14--Anheuser-Busch Cos., the country's largest brewer, and Singapore-based Asia Pacific Breweries Ltd. have reached an agreement in which A-B will become the U.S. importer of Tiger Beer on May 1. A-B will distribute the brand through its network of nearly 600 independent beer wholesalers in the United States.

Financial terms of the agreement weren't disclosed.

Tiger Beer is the flagship brand of Asia Pacific Breweries, or APB, a joint venture between Dutch brewer Heineken NV and Singapore conglomerate Fraser & Neave Ltd. APB's other key brands include Anchor, Baron's Strong Brew and ABC Extra Stout.

Tiger Beer, brewed in Singapore, has been imported to the U.S. by APB since the 1990s, but the brand never gained wide distribution. Marketing currently focuses on restaurants and bars in Boston, Las Vegas, Los Angeles, Miami, New York and San Francisco.

Once Anheuser-Busch begins importing Tiger Beer, the brand will have access to bars and restaurants throughout the country.

Although Tiger Beer isn't well known in the United States, Anheuser-Busch may be eying the brand's performance in the United Kingdom as an indicator of its potential. Sold there for more than 30 years, the brand has become the most popular Asian imported beer brand in the U.K. and Ireland, according to APB.

Tiger Beer is the third import that Anheuser-Busch plans to add to the portfolio of products sold to its wholesalers. Last month, A-B began importing beer from its Chinese subsidiary Harbin Brewery Group Ltd. to Los Angeles and Honolulu; next month, it will begin importing the beers of Dutch brewer Royal Grolsch NV.

In addition, A-B brews Japan's Kirin Ichiban and Kirin Light beers for the U.S. market under a licensing deal.

Imported beers account for about 13 percent of the U.S. beer demand, and they continue to gain popularity rapidly, rising 7.2 percent last year, according to the Beer Institute.

A-B already is getting a chunk of the profit in the import market through its 50 percent stake in Mexican brewer Grupo Modelo, the maker of Corona, and a 27 percent stake in Tsingtao Brewery Co.

But importing beers will give A-B a bigger chunk of the profits, while keeping A-B's network of wholesalers happy with new import brands they can sell. The wholesalers have been clamoring for imports as the sales of domestic beer flatten.

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Copyright (c) 2006, St. Louis Post-Dispatch

Distributed by Knight Ridder/Tribune Business News.

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BUD, HINKY, HEI, GPMCF,

Source: St. Louis Post-Dispatch

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