CBN stops distributing Amstel

CASTLE Brewing Namibia (CBN) has announced that it has ceased marketing and distributing the popular premier beer, Amstel Lager in Namibia.

This follows Heineken’s termination of SABMiller’s 40-year-old licence to manufacture and distribute the lager with immediate effect. CBN is a marketing and distributing arm of SABMiller in Namibia.CBN had been distributing Amstel lager in the country for the past 20 years.A private arbitration held recently found that SABMiller’s transaction in South America in 2005 “constituted a change in control of the group and consequently could be regarded, in the reasonable opinion of Heineken, to be inimical to its interests thus providing it with the right to termination”.SABMiller’s finalised a N$57,4 billion acquisition of Bavaria in Colombia two years ago.According to its website, SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents, while Heineken is Europe’s largest brewer.According to CBN, Heineken’s argument was that CBN/SAB’s gains were being channelled towards SABMiller’s global expansion, which CBN believes is to restrict SABMiller’s domestic and international success.CBN Managing Director, Cobus Bruwer said, “We find it really difficult to believe that SABMiller’s 15 per cent stake as a result of the Bavaria transaction in South America – on the other side of the world – poses any threat whatsoever to Heineken’s interests in Namibia.”He added that actually the success of Amstel in Namibia could be attributed to over 20 years of investment behind the brand by CBN, combined with strong sales, distribution and marketing capabilities.”Proud as we are of our achievement in building this brand, we take equal pride in the other fine beers – both premium and mainstream – which today comprise CBN’s portfolio,” said Bruwer.Efforts to get more information, including how the company would be impacted financially, hit a blank as CBN managers were said to be out and would only return to work on Monday.According to an article in the South African daily, Business Report yesterday, Tom de Man, the regional president of the African and the Middle East units of Heineken, told the paper that Heineken hoped to have its own brewery up and running in South Africa in two years.The report also said until then, Brandhouse Beverage, a Cape Town-based firm, would import from Heineken’s European breweries a little less than the 2,3 million hectolitres of Amstel.Amstel is said to make up for nine per cent of the South African beer market, which gives the Heineken group a combined 11 per cent share of that market.CBN is a marketing and distributing arm of SABMiller in Namibia.CBN had been distributing Amstel lager in the country for the past 20 years.A private arbitration held recently found that SABMiller’s transaction in South America in 2005 “constituted a change in control of the group and consequently could be regarded, in the reasonable opinion of Heineken, to be inimical to its interests thus providing it with the right to termination”.SABMiller’s finalised a N$57,4 billion acquisition of Bavaria in Colombia two years ago.According to its website, SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents, while Heineken is Europe’s largest brewer.According to CBN, Heineken’s argument was that CBN/SAB’s gains were being channelled towards SABMiller’s global expansion, which CBN believes is to restrict SABMiller’s domestic and international success.CBN Managing Director, Cobus Bruwer said, “We find it really difficult to believe that SABMiller’s 15 per cent stake as a result of the Bavaria transaction in South America – on the other side of the world – poses any threat whatsoever to Heineken’s interests in Namibia.”He added that actually the success of Amstel in Namibia could be attributed to over 20 years of investment behind the brand by CBN, combined with strong sales, distribution and marketing capabilities.”Proud as we are of our achievement in building this brand, we take equal pride in the other fine beers – both premium and mainstream – which today comprise CBN’s portfolio,” said Bruwer.Efforts to get more information, including how the company would be impacted financially, hit a blank as CBN managers were said to be out and would only return to work on Monday.According to an article in the South African daily, Business Report yesterday, Tom de Man, the regional president of the African and the Middle East units of Heineken, told the paper that Heineken hoped to have its own brewery up and running in South Africa in two years.The report also said until then, Brandhouse Beverage, a Cape Town-based firm, would import from Heineken’s European breweries a little less than the 2,3 million hectolitres of Amstel.Amstel is said to make up for nine per cent of the South African beer market, which gives the Heineken group a combined 11 per cent share of that market.