E-Malt.com News article: USA: McCraith Beverages launches lawsuit against Anheuser-Busch InBev

McCraith Beverages, based in New York Mills, N.Y., filed a federal lawsuit in the U.S. District Court, Northern District of New York against Anheuser-Busch InBev for assigning new beers to a rival distributor, St. Louis Today reported on May, 17.

In the lawsuit, McCraith alleges it was granted exclusive distribution rights between 1994 and 2004 to distribute Rolling Rock, Stella Artois, Becks, Bass and other beers by Labatt USA, which was later acquired by InBev USA.

Belgium-based InBev acquired St. Louis-based Anheuser-Busch in 2008.

Since then, McCraith, a MillerCoors distributor, has continued to distribute the legacy InBev brands, but not other A-B brands such as Budweiser or Bud Light.

McCraith alleges that when A-B launched new beers in recent months that are extensions of the legacy InBev brands, including Bass IPA and Beck's Sapphire, A-B assigned the new beers to another distributor in New York.

According to McCraith, assigning a new distributor violates New York's Alcoholic Beverage Control law, which prohibits brewers from modifying a beer distribution agreement without cause. McCraith said it estimates its damages are at least $240,000.

Gary Ettelman, an attorney representing McCraith, said splitting up distribution of a brand extension from its parent brand negatively impacts sales of the parent brand. "The first people who are going to buy the brand extension are the people who already buy that brand," Ettelman said.

With new brand extensions coming out, McCraith faces significant losses, Ettelman said.

Anheuser-Busch said it is reviewing the New York lawsuit.

"Anheuser-Busch believes the most effective and efficient distribution of our brands is through our network of A-B equity wholesalers," the company said. "When new brand extensions are introduced, the distribution rights are granted to the equity wholesalers, where permitted. In states where this is not permitted, new brand extensions are granted to the current wholesaler who carries that brand family, whether they are equity or non-equity wholesalers. In New York, we believe the law supports granting the new brand rights to our equity wholesalers.”


21 May, 2013