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Belgian brewery had eyed Stroh Brewery before Coors made its $425 million buyout bid.

Belgian brewer had eyed Stroh Brewery before Coors made its $425M buyout bid

As talks between Coors Brewing Co. and the Stroh Brewery Co. proceeded last week, Jose Dedeurwaeder, chief executive officer, Artois Piedboeuf Interbrew S.A., reported that the Belgian brewer had tried to acquire Stroh earlier this year.

Interbrew's efforts were scrapped when Coors made its $425-million bid in September; however, that agreement is still under consideration by the U.S. Justice Department on competition grounds. If the sale manages to fall through, Interbrew would again take a shot at Stroh, Dedeurwaeder said.

Interbrew's CEO explained that his company had not gone through with a bid for Stroh because "due diligence" studies had not put a price on the brewer's facilities when Coors announced its agreement.

The attempt by the Belgian brewery indicates the company's push to develop a stronger international market, analysts said, although it was not clear Interbrew could afford to pay the high Stroh price tag. Interbrew currently realizes nearly half of its annual $1.5 billion sales from France and the Netherlands. Although the company has representation in many other countries, it has not managed to build global recognition for the flagship brand, Stella Artois.

Aside from Stella, Interbrew is pushing for bigger international sales of its specialty beers, such as Hoegaarden, Leffe, Vieux Temps and Horse-Ale.
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Title Annotation:Artois Piedboeuf Interbrew S.A., Adolph Coors Co.
Publication:Modern Brewery Age
Date:Dec 11, 1989
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