By Andy Young

Lion has reached agreement with AB InBev over the transition of the European brewer’s brands to Carlton and United Breweries.

The agreement has seen the date for the transition locked in and has also outlined payments that will be made to Lion.

In a statement about the deal Kirin, the owner of Lion, said: “Lion, as the regional headquarters, manages its subsidiaries which manufacture and sell beer, spirits and wine, and dairy and drinks in Oceania. The beer, spirits and wine operating companies have been selling the relevant beer products as licensee in Australia, but Lion was notified of the termination at the end of March 2016. 

“After consultations, Lion reached agreement on the terms of the termination yesterday [June 26]. The effective date of the termination is September 30, 2016.”

Kirin added: “Consistent with the terms of the agreement, Lion expects that it will receive payments in the range of 250 million – 300 million Australian Dollars during the second half of fiscal 2016 as calculated according to the agreement.”

Lion will continue to distribute AB InBev’s brands, including Corona Extra, Budweiser, Stella Artois, Beck’s, Hoegaarden, Leffe, Pacifico Clara, Negra Modelo and Belle-vue Kriek, until 30 September, with Carlton and United taking over from 1 October.

A spokesperson for CUB told TheShout: “On and prior to 30 September 2016, all orders for AB InBev brands should be placed with Lion representatives who will deliver according to normal delivery schedules. Beginning on 1 October 2016, CUB representatives will accept orders for AB InBev brands for delivery from 1 October. 

"In order to ensure a smooth transition, CUB representatives will start reaching out to customers shortly to discuss planning for the period post-September 30. 

"Customers who do not have a CUB account can contact CUB on 13 Beer to open an account, or alternatively order through their approved wholesaler accounts. 

"The termination does not affect New Zealand, where the existing relationship between AB InBev and Lion will continue.

"AB InBev has expressed its gratitude to Lion for being a trusted distribution partner in Australia, and is very pleased to rekindle its distribution partnership with CUB."

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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