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Thursday, January 30, 2003

Ommegang sold to Duvel Moortgat

Staff Report

Michel Moortgat, director general of Duvel Moortgat, Don Feinberg and Wendy Littlefield, co-founders of Brewery Ommegang and proprietors of Vanberg & DeWulf have announced they have concluded negotiations resulting in a complete transfer of Ommegang stock to Duvel Moortgat and the distribution rights for Duvel held by Vanberg & DeWulf in the eastern seaboard to the Belgian brewer.

The Ommegang Brewery is selling its Ommegang, Hennepin and Rare Vos brands nationally, now in 42 states, said Littlefield.

Feinberg and Littlefield will consult for Ommegang during the transition which will be through April.

"We're excited about it. It's an opportunity to do something new," Littlefield said. She said she would like to take some time off, but has a bunch of ideas about future plans.

They will continue to operate their import company Vanberg & DeWulf, representing artisan ales made by independent family-run breweries in Belgium and France.

"I think it will be expanded," said Littlefield. Currently, they hold 60,000 cases, but Ommegang Brewery has the ability to hold up to 200,000 cases.

She said she believes the facilities location will remain the same and the current 15 to 16 employees will remain on, unless they choose not to.

She is, however, uncertain as to who will replace Feinberg and herself.

"This is the perfect outcome of the more than 20-year relationship between our families," acknowledged Feinberg, who began importing Duvel to the United States in 1982 and established Ommegang in 1997. "We are very proud of the role we have played in introducing Americans to the extraordinary world of Belgian beers, beginning with Duvel, the first Belgian beer that I fell in love with as a graduate student in Brussels. We are excited that this commitment of Duvel Moortgat's resources will enable both Duvel and Ommegang to reach their full potential in the United States."

Littlefield added, "Duvel Moortgat will be operating in two of the most dynamic sectors of the US beer market today - namely specialty Belgian imports, and domestic, bottle-conditioned artisan ales. This is a winning combination. With Duvel and Ommegang together, they can build understanding and appreciation for these remarkably complex and rewarding beers."

Moortgat explained, "We view the United States as a priority market. Duvel is already one of the top two specialty imports from Belgium in this country and it enjoys an exceptional reputation for quality. We have been involved with Ommegang since its inception, and we possess the resources and the willingness to invest and develop the marketplace for both Duvel and Ommegang. We are excited to be building on the strong foundation that was created by Don and Wendy's work."

Laurent Demuynck, Ommegang's new president and head of Duvel Moortgat USA, added, "There is no question that the market for Belgian beers in general, and top-fermented specialty ales made in Belgium and the United States is ripe for development. As the market leader in this sector in Belgium, with 20 years experience in exporting, and as investors in Ommegang from the start we feel uniquely well suited to the task."

As stated in a recent press release from Brewery Ommegang, Duvel Moortgat is the fifth largest brewery in Belgium selling over 2,752,000 cases annually, it is the absolute market leader in Belgian brewing in terms of profitability, and Duvel is the nation's best-selling, specialty beer.

Jan Leonard Moortgat established the brewery in 1871. The fourth generation of Moortgats is now at the helm, stated Brewery Ommegang Representatives. The company's importer into the United States are Vanberg & DeWulf (to be replaced by Duvel Moortgat USA) for the eastern seaboard, and Belukus Marketing Inc., based in Austin, Texas, for the rest of the country. The consolidation of assets in the United States follows similar moves in other export markets in recent years, including The Netherlands and France.

Additionally in June 1999 Duvel Moortgat acquired a 50 percent stake in Brewery Bernard in the Czech Republic. Moortgat is listed on the Euronext-Brussels stock exchange (symbol: DUV).

 
 
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