Diageo, the world's leading premium drinks business announced that Guinness Bass Import Company (GBIC), its malt beverage importing and marketing affiliate, will relinquish its 1998 US Importation and Distribution Agreement rights for Bass Ale to Bass' parent company, Interbrew, effective June 30th, 2003, for a sum of $105 million. Under the terms of the 1998 Distribution Agreement, GBIC was the exclusive U.S. marketer and distributor of Bass beer.
Under the new agreement GBIC and Interbrew will work in a cooperative effort to continue to manage and grow the brand until the US rights are handed over to Interbrew on June 30th, 2003. Under the 1998 agreement, GBIC had the right to continue selling and marketing the brand in the US until July 2016.
Considered a 'super premium' beer, volume depletions of Bass for fiscal year 2001 were around 7.5 million cases. Paul Clinton, President and CEO of Diageo North America, stated, 'Diageo's premium drinks strategy is focussed on delivering organic growth. We are constantly looking at ways to increase our focus on our priority brands. While Bass has been a significant part of our GBIC business for some time, we believe that our renewed focus on our priority brands will deliver the best value for our shareholders going forward.' The relinquishment of the contract rights will result in a name change for GBIC, although the new name has not yet been determined and will be the subject of a separate announcement.
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Notes to editors
1. Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wine and beer categories. These brands include: Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Jose Cuervo, Tanqueray, Captain Morgan, and Beaulieu Vineyard and Sterling Vineyards wines.
2. Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands and performance, visit us at www.diageo.com.