E-Malt.com News article: USA: Anheuser-Busch InBev files lawsuit to gain a distributor in Kentucky

Anheuser-Busch InBev has filed a lawsuit in Kentucky asking the state's chief alcohol regulator to grant the company an application to acquire a distributor in the state, bizjournals.com reported on October, 21.

The suit, filed in Kentucky's Franklin County, said a request for a distributor's license has been pending for more than 60 days and asked the court to compel the Kentucky Department of Alcoholic Beverage Control to immediately grant the application. Additionally, A-B InBev asked the court to make the beverage control department dismiss appeals filed against the application or to immediately schedule a hearing.

In August, Anheuser-Busch applied for a distributor's license in the city of Owensboro, Kentucky. The license request came out of a deal to acquire Budweiser of Owensboro, a distribution company owned by Tennessee-based Hand Family Companies. The request was approved at the time by the Owensboro Alcoholic Beverage Control administrator, amid protests by some business and industry groups.

Both local and national organizations have filed letters of protest with the beverage control department asking that it not allow A-B InBev to gain control of beer distribution in the state. A letter by industry watchdog Alcohol Justice filed with the beverage control department asked the department to deny A-B InBev's request. In the letter, Alcohol Justice CEO Bruce Lee Livingston said, "Encroaching ownership of the distribution tier and increased power will ultimately expand ABI's ability to oppose and defeat important public health policy regarding alcohol prices and taxes; alcohol outlet density; and alcohol advertising and promotion, among others."

The Kentucky Guild of Brewers also filed formal protest over A-B InBev's plan and expressed concern that "market access options for small brewers would be significantly diminished should (the) deal be approved," according to the Brewer's Association.

A-B InBev said, "This transaction should not affect consumers in any way. In fact, there have never been more choices for beer consumers — including those in Kentucky where the craft beer industry is booming."

A-B InBev also called the application review process "highly abnormal and unusually lengthy" and said, "Anheuser‑Busch has been fully cooperative with the ABC in their requests. By law, the ABC had 60 days to approve or reject the application. The deadline has now passed."



22 October, 2014