Gambrinus & Grupo Model In Arbitration.

The Gambrinus Company confirmed recent reports that it has initiated an arbitration against Grupo Modelo of Mexico and its U.S. subsidiary, Procermex, Inc., before the International Court of Arbitration of the International Chamber of Commerce. The arbitration was brought to resolve a dispute regarding the term and renewal of the Gambrinus importer agreement.

Gambrinus stated that Grupo Modelo had originally approached the company expressing an interest in acquiring it as a means to improve Modelo’s profitability. Modelo assured Gambrinus that this action was unrelated to Gambrinus’ results and praised the Gambrinus ownership and its management for its outstanding performance. Gambrinus responded that the company was not for sale, that it valued its independence, and that Gambrinus would continue devoting its entrepreneurial efforts towards achieving further growth for the Modelo brands. Modelo then informed Gambrinus that the importer agreement
would not be renewed after December 31, 2006. Gambrinus filed the arbitration to preserve its import rights beyond 2006 disputing Modelo’s right to this action.