ab signs deal with icelandic glacial

Anheuser-Busch Inc. is the new master distributor for Icelandic Glacial super-premium natural spring water in the U.S., effective immediately. Anheuser-Busch has taken a 20% equity interest in Icelandic Water Holdings as part of a new agreement.

Initial distribution will focus on select markets–including California, New York, New Jersey and Connecticut–with plans to expand nationwide in 2008. Icelandic Water Holdings will continue to oversee all sales and marketing for the brand in the U.S.

This deal will give Icelandic Glacial natural spring water access to more consumers through Anheuser-Busch’s network of wholesalers across the country. It also provides A-B with a pure, high-end natural spring water to compete in the fast-growing, $11 billion U.S. bottled water market at a time when consumer demand for higher-quality water is increasing. Terms of the deal were not disclosed.

Icelandic Water Holdings also has plans to build a new 70,000-square-foot bottling facility in Iceland. The new facility will enable the company to meet increased consumer demand and make more bottled water available for Anheuser-Busch’s distribution network in the U.S.

The brand currently is available in a limited number of U.S. markets through a variety of local beverage distributors, including tests with a few Anheuser-Busch wholesalers.

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