E-Malt.com News article: Canada: Mill Street Brewery claims that suit by Sapporo subsidiary, Sleeman is without merit

Mill Street Brewery, a leading provider of craft beer in Toronto, denies any wrongdoing in response to a $3 million lawsuit brought against it by Sleeman Breweries Ltd, a subsidiary of Japanese beer conglomerate, Sapporo Inc., CNW reported November 2. The recent action, initiated against former Sleeman regional sales director David Mitchell and Mill Street Brewery - his new employer, contends that Mitchell joined Mill Street in contravention of a non-compete agreement that he had signed and took confidential information with him and shared this information with Mill Street. Mill Street Brewmaster, Joel Manning, says the lawsuit has no merit. "We don't need a competitor's information to make and sell great beers. Our beers are getting a lot of attention these days but, this is a result that we hadn't anticipated."

Mill Street Brewery filed its statement of defence today with the Ontario Superior Court in Toronto. "This seems to be more about a beer industry Goliath trying to squash a David beer brewer. We care about making beer. We believe that this is an extraordinary attempt to hurt one of Ontario's most popular craft brewers," Manning contends. David Mitchell shed some personal light on his situation at Sleeman. "I was increasingly unhappy at Sleeman and this certainly didn't improve when the company was bought by Sapporo. Finally, when I was passed over for a promotion I engaged a corporate recruiter to find a job elsewhere." The recruiter matched Mitchell with Mill Street and the winning combination was made. Mitchell was excited about the move to a smaller, successful company where quality and beer crafting are a top priority. "I have admitted to mistakenly backing up personal and industry files before I left Sleeman but have sworn an affidavit stating that I never used or shared confidential information with anyone."

Brewmaster Manning points out that hiring practice in the beer industry differs by organization. "Mill Street does not require its employees to sign non-competes. If anybody was not happy working for Mill Street, the last thing we would want is for them to stick around."

Irvine Weitzman, CEO of Mill Street Brewery, believes that the lawsuit has absolutely no merit. "Sleeman commissioned an independent forensic audit of Mr. Mitchell's computer and his storage device, which Mr. Mitchell provided willingly. Our understanding is that the audit confirmed that just as we and David have repeatedly stated - no files of a confidential nature to Sleeman were ever shared with Mill Street Brewery." Weitzman adds, "We take great pride in our award-winning beers. Producing and marketing innovative and interesting beer is a lot of fun. We are proudly Canadian and actually just want to be left alone to excel in our craft and don't want to be run-over by a branch of a conglomerate operating ten thousand miles away."

About Mill Street Brewery

Mill Street Brewery produces handcrafted beers and ales and operates a brew pub in Toronto's historic Distillery District. The Mill Street beers have won awards every year since its inception in 2002 and the Mill Street Brewpub received the 2007 Golden Tap awards for the best Brew Pub in Ontario. Mill Street Brewery produces a variety of beers to suit every taste, including small batches of seasonal brews. Mill Street offers a number of boutique beers including Original Organic Lager (with 100% certified organic ingredients), Tankhouse Ale, Stock Ale and Coffee Porter and most recently a wonderful Belgian Wit.


02 November, 2007