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posted by takyon on Wednesday October 28 2015, @10:30AM   Printer-friendly
from the blue-loon dept.

It turns out you can hide an entire brewery (or not even have a brewery) and pretend to produce a craft beer, advertise it as such, and it's not even against the law. For years, Blue Moon Brewing Co. has been passing off its beers as "microbrews", or "craft beers", while curiously building market share beyond what a craft brewery could actually produce. The catch is that Blue Moon is semi-secret brand of MillerCoors LLC. CourtHouseNews reports:

Evan Parent, who describes himself as a "beer aficionado," began buying Blue Moon beer in 2011, but stopped in about mid-2012 when he discovered it is made by MillerCoors LLC, which owns widely recognizable labels such as Coors, Miller High Life, Milwaukee's Best and Hamms.

Parent started a class action law suit against MillerCoors in San Diego state court, claiming deceptive practices and misrepresentation in violation of California's Consumers Legal Remedies Act; untrue and misleading advertising in violation of California's false advertising law; and unlawful, fraudulent and unfair business practices in violation of California's unfair competition law.

Under craft-brewing principles [as defined by the Brewers Association], brewers cannot produce more the 6 million barrels of beer annually, must be less than 25 percent owned by a non-craft brewer and must brew beer using only traditional or innovative brewing ingredients. In comparison, MillerCoors makes about 76 million barrels of beer per year, according to Parent who says the company charges "up to 50 percent more for Blue moon" based on its bogus craft-beer status. He also claims the company "goes to great lengths to disassociate Blue Moon beer from the MillerCoors name" by stating on Blue Moon packaging that it is brewed by Blue Moon Brewing Co.

MillerCoors managed to get the case moved to federal court, and the judge handed MillerCoors a slam dunk win on all counts. MillerCoors found specific loopholes in California law that allowed them to produce beer under "fictitious names" if they just register those names on the official "fictitious names" registry. The plaintiff has 30 days to amend the complaint after the judge's final order.


takyon: MillerCoors LLC is a joint venture between SABMiller and Molson Coors Brewing Company that was created in 2007 and approved by U.S. antitrust regulators in 2008. It has been described as a challenger to Anheuser-Busch. However, SABMiller recently agreed to be purchased by Anheuser-Busch InBev for $106 billion. MillerCoors may be dismantled by regulators and some brands could be divested.

Previously: Congress May Lower Beer Taxes, Sam Adams Could Cease to be "Craft Beer"

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  • (Score: 3, Interesting) by MichaelDavidCrawford on Wednesday October 28 2015, @11:40AM

    by MichaelDavidCrawford (2339) Subscriber Badge <mdcrawford@gmail.com> on Wednesday October 28 2015, @11:40AM (#255515) Homepage Journal

    If you operate a business in California as a Sole Proprietorship or a Partnership, and you don't use your own legal name for the business, you pay for a classified newspaper ad in their Fictitious Business Name Statements section. After running the ad once per week for four weeks, the "Newspaper of General Circulation" gives you a statement that lets you do stuff like open bank accounts, advertise openly under your fictitious name and so on.

    It's simply how sole proprietors and partnerships register their businesses in that state.

    I expect corporations can file fictitious business names too but this still strikes me as false advertising.

    --
    Yes I Have No Bananas. [gofundme.com]
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