Craft Brew News â 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 Guildâs attempt to appeal a ruling that it violated laws prohibiting unfair trade practices and illegal âpay-to-playâ 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 âprice discriminationâ â a practice in which distributors sell the same quantity of a product at different prices to different retailers â by offering rebates to some retailers but not others. In a statement to the press, the ABCC said it remains âcommitted to ensuring an equal playing field in the alcoholic beverages industryâ in Massachusetts.
The ABCC said. âWe are pleased with todayâs decision from the Supreme Judicial Court, upholding the regulation that prohibits manufacturers and wholesalers from bribing retailers,â
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 â which also operates as Craft Brewers Guild â with a 90-day license suspension in 2016 after an investigation revealed the company had âengaged in a pervasive illegal enterprise involving numerous retailers and corporations that spanned at least five years.â 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 companyâs 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.
âBeginning 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,â the lawsuit said. âDrizly has approached potential commercial retail partners, explored the best path to market, consulted with state regulatory officials, and crafted a market entry plan.â
US Supreme Wonât Hear Consumersâ MegaBrew Challenge
The U.S. Supreme Court has passed on hearing beer consumersâ bid to block Anheuser-Busch InBevâs $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 âModified Final Judgmentâ â 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 Fatherâs label.
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