By Staff Reporter WINDHOEK The fierce competition between the two brewing giants, Heineken and SABMiller, is turning into a real catfight, with Heineken deciding to revoke SABMiller’s right to continue producing its Amstel brand under licence. The local subsidiary of SABMiller, Castle Brewing Namibia (Pty) Ltd (CBN), announced on Tuesday that Heineken has terminated SAB’s, and therefore CBN’s licence to market and distribute Amstel Lager. CBN has marketed and distributed Amstel in Namibia for the past 20 years, but says it will stop distributing Amstel with immediate effect in accordance with the new ruling. A statement from CBN says this follows a private arbitration held recently to determine whether Heineken could invoke a term of the agreement entitling it to terminate the Amstel Trade Mark Licence Agreement. The arbitration found that SABMiller’s transaction in South America in 2005 constituted a change in control of the group and consequently could be regarded, in the reasonable opinion of Heineken, to be inimical to its interests, thus providing it with the right to termination. According to CBN, Heineken’s argument was that CBN/SAB were using profits to fund SABMiller’s global expansion, and that Heineken’s objective was to restrict SABMiller’s Namibian domestic and international success. The statement from CBN (Pty) Ltd’s Managing Director, Cobus Bruwer, seems aimed at reassuring its customers in Namibia that it will continue to be a presence. “Consumers and customers are our first priority. We apologize for any inconvenience the Heineken decision has caused. We can assure all consumers that we remain dedicated to providing a portfolio of brands across the premium spectrum,” he said. The company said it found it difficult to believe that SABMiller’s new 15 percent shareholding as a result of the Bavaria transaction in South America – on the other side of the world – posed any threat whatsoever to Heineken’s interests in Namibia. CBN feels the success of the Amstel brand in Namibia is attributable to over 20 years of investment behind the brand by the company, combined with its strong sales, distribution and marketing capabilities. “Proud as we are of our achievement in building this brand, we take equal pride in the other fine beers – both premium and mainstream – which today comprise CBN’s portfolio. It is pleasing to note that our international premium brand, Pilsner Urquell, continues to capture market share, Bruwer said. The company insists its consumers are its first priority and that it remains committed to providing them with a comprehensive choice of differentiated and superior products.