Lion will receive up to $300 million from Anheuser-Busch InBev as compensation for the early termination of its distribution deal for Corona and other brands.
AB InBev has terminated Lion’s agreement effective from September 30, suggesting the global brewing giant is highly confident it will receive all necessary approvals for its acquisition of SABMiller to proceed.
“Lion was notified of the termination at the end of March, 2016,” parent company Kirin Holdings announced today.
“After consultations, Lion reached agreement on the terms of the termination yesterday.”
Kirin said Lion expects to receive payments in the range of $250 million to $300 million during the second half of the 2016 financial year, as calculated according to the agreement.
Carlton & United Breweries (CUB) has written to customers advising that it will begin accepting orders for the AB InBev brands on October 1.
“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,” the CUB letter says.
“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.”
Aside from Corona Extra, the AB InBev portfolio includes Budweiser, Stella Artois, Stella Artois Legere, Beck’s, Hoegaarden, Leffe, Pacifico Clara, Negra Modelo and Belle-Vue Kriek.