Anheuser-Busch has lined up a super-premium natural spring water for distribution in the US.

The brewer confirmed yesterday (18 July) that it has secured an agreement with Icelandic Water Holdings to distribute Icelandic Glacial in the US, with immediate effect. A-B has subsequently taken a 20% equity interest in Icelandic Water Holdings as part of the agreement. Financial details for the deal were not disclosed.

Icelandic Glacial has been available in the US since November 2005, and is also available in Canada, Iceland and selected markets throughout mainland Europe. The brand currently is available in a limited number of US markets through a variety of local beverage distributors, including tests with a few A-B wholesalers. Initial distribution will focus on select markets - including California, New York, New Jersey and Connecticut - with plans to expand nationwide next year. Icelandic Water Holdings will continue to oversee all sales and marketing for the brand in the US.

"Our business landscape is changing, and we are looking for opportunities outside the alcohol beverage category to fuel additional growth for our company and our wholesalers," said August Busch IV, president and CEO of A-B. "We believe Icelandic Glacial natural spring water has tremendous potential in the US when combined with the strength of our distribution network."

A-B wholesalers will distribute Icelandic Glacial natural spring water in 500ml, 750ml sports-cap, 1-litre PET bottles, and 500ml PET bottle six-packs.