Craft Brew News – 3/8/19

(Courtesy of Brewbound.com)

Massachusetts High Court Rules Against Craft Beer Guild Appeal

The Supreme Judicial Court of Massachusetts has denied Sheehan Family Companies subsidiary Craft Beer Guild’s attempt to appeal a ruling that it violated laws prohibiting unfair trade practices and illegal “pay-to-play” activities, according to the Boston Globe.

The state high court agreed with the Massachusetts Alcoholic Beverages Control Commission (ABCC), which found that the beer wholesaler had violated the state law against “price discrimination” — a practice in which distributors sell the same quantity of a product at different prices to different retailers — by offering rebates to some retailers but not others. In a statement to the press, the ABCC said it remains “committed to ensuring an equal playing field in the alcoholic beverages industry” in Massachusetts.

The ABCC said. “We are pleased with today’s decision from the Supreme Judicial Court, upholding the regulation that prohibits manufacturers and wholesalers from bribing retailers,”
As Brewbound previously reported, the ABCC found that Craft Beer Guild, which distributes more than 200 craft brands from throughout Massachusetts, had paid bars about $120,000 from for tap handle placements.

In the 2017 ruling upheld this week by the Supreme Judicial Court, a Suffolk Superior Court judge ruled that the ABCC, which slapped Craft Beer Guild — which also operates as Craft Brewers Guild — with a 90-day license suspension in 2016 after an investigation revealed the company had “engaged in a pervasive illegal enterprise involving numerous retailers and corporations that spanned at least five years.” In lieu of suspension, Craft Beer Guild agreed to pay a $2.6 million fine.

Drizly Files Lawsuit Against Co-Founder, Eyes Cannabis Delivery

A lawsuit filed this week by Boston-based on-demand alcohol delivery company Drizly against Nick Rellas, its former co-founder and CEO, revealed the e-commerce company’s plans to expand into medical and recreational cannabis delivery later this year, according to Law 360.

The lawsuit alleges that Rellas, who exited Drizly in August, violated a 1-year non-compete and a nondisclosure agreement by attempting to start his own e-commerce cannabis delivery business, the outlet reported.

“Beginning in late 2017 and continuing through his tenure as CEO, Drizly decided to enter an adjacent market for another highly controlled product: legalized medical and recreational cannabis,” the lawsuit said. “Drizly has approached potential commercial retail partners, explored the best path to market, consulted with state regulatory officials, and crafted a market entry plan.”

US Supreme Won’t Hear Consumers’ MegaBrew Challenge

The U.S. Supreme Court has passed on hearing beer consumers’ bid to block Anheuser-Busch InBev’s $107 billion acquisition of rival SABMiller, according to Law 360.

A group of consumers had filed a lawsuit arguing that allowing the MegaBrew merger to proceed would have constricted the beer market, the outlet reported.
In October, the merger cleared its final hurdle to approval as a federal judge signed a “Modified Final Judgment” — more than two years after the Department of Justice initially green-lit the acquisition.

New Holland Receives Approval For Pabst-Branded Whiskey

New Holland Brewing Co. recently received federal label approval for a Pabst Brewing Co.-branded whiskey, signaling a contract distilling arrangement between the two companies, according to MiBiz.com.

Recall that Michigan beer company inked a marketing, sales and distribution agreement with Pabst in December 2016. Additionally, Pabst already sells a bourbon under the Not Your Father’s label.

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Michael Potorti is the Host of Craft Beer Storm and Founder/Brewer at Beara Brewing Co. in Portsmouth, NH

Michael Potorti
Founder/Brewer
Host of "Craft Beer Storm" Podcast
michael@craftbeerstorm.com
michael@bearairishbrew.com

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