E-Malt.com News article: 4067

USA: Three beer wholesalers, two on Long Island, have sued Manhattan Beer Distributors Inc., alleging that their larger, Bronx-based rival is trying to monopolize the distribution of beer in 14 counties, Newsday revealed on January 25. The suit, filed in State Supreme Court in Central Islip by Boening Bros. Inc. of Lindenhurst and Clare Rose Inc. of Patchogue, also names various unidentified breweries and individuals, whom the suit alleges conspired with Manhattan. The Clare Rose suit also names InBev USA of Norwalk, Conn.

The suit, which seeks unspecified damages, alleges Manhattan attempted to compel brewers to break agreements with the wholesalers that are protected under state law. The other plaintiff is Oak Beverages Inc., a Rockland County-based wholesaler run by Debra Boening, the daughter of Boening Bros. president Harold J. Boening Sr.

"The ultimate goal of these conspirators is to drive all competing beer wholesalers in the relevant market out of business, including plaintiffs, except for those wholesalers distributing Anheuser-Busch products, and, possibly Miller and Heineken products, by obtaining distribution rights for virtually every other brand," the suit alleged. Not so, said a lawyer for Manhattan Beer. "They've got the facts wrong, and they've got the law wrong," said Andre R. Jaglom of Tannenbaum Helpern Syracuse & Hirschtritt. "There's no unlawful conduct. Manhattan Beer is not driving this bus. The suppliers are driving this bus. There's consolidation going on all over the country."

The brewing industry has been going through global consolidation, and the result has been a shuffling of brands among wholesalers.

Clare Rose, the exclusive distributor of Beck's products in Nassau County and western Suffolk, claimed that InBev refused to offer it rights to sell Beck's Premier Light, a new low-carb brand. Instead, the suit says, it was offered to Manhattan Beer in violation of industry practice and state law. The suit also alleged that InBev requested that Clare Rose sell its Beck's distribution rights to Manhattan Beer.

Manhattan Beer, which has a warehouse in Wyandanch, distributes Coors, Corona, Saranac and other brands.

"We're protecting our rights as a wholesaler," said Lisa Rose, president of Clare Rose, which was founded in 1936 and which distributes Budweiser throughout Long Island and Heineken and Beck's in parts of the region.

"We're doing everything to protect our rights," said Harold Boening, who runs the firm established by by his grandfather in 1901. It distributes Miller, Samuel Adams, Becks, Guinness, Molson and Bass in a territory that includes Nassau, Suffolk and eastern Queens.

InBev USA was formed last year through the combination of Labatt USA and Beck's North America. ImBev spokeswoman Brenda Williams said its policy is not to comment on litigation.


26 January, 2005