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Playing Small is Okay, Says Judge in "Craft Beer" Case

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

frojack writes:

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.

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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"

Original Submission

• Clarification? Clarification? (Score: 2) by tangomargarine on Wednesday October 28 2015, @04:36PM

  by tangomargarine (667) on Wednesday October 28 2015, @04:36PM (#255672)

  must brew beer using only traditional or innovative brewing ingredients

  Um, what else is there? That's like saying "can only use old and new ingredients." Maybe "ingredients that were innovative a couple years ago but still haven't caught on with most people yet"?

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• Re:Clarification? (Score: 2) by takyon on Thursday October 29 2015, @12:08AM

  by takyon (881) <takyonNO@SPAMsoylentnews.org> on Thursday October 29 2015, @12:08AM (#255818) Journal

  The Brewers Association definition is incredibly loose, except for one specific prohibition:

  A brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages (FMBs) are not considered beers.

  But what is a flavored malt beverage? From Wikipedia: [wikipedia.org]

  According to the US Alcohol and Tobacco Tax and Trade Bureau (TTB):

  Flavored malt beverages are brewery products that differ from traditional malt beverages such as beer, ale, lager, porter, stout, or malt liquor in several respects. Flavored malt beverages exhibit little or no traditional beer or malt beverage character. Their flavor is derived primarily from added flavors rather than from malt and other materials used in fermentation. At the same time, flavored malt beverages are marketed in traditional beer-type bottles and cans and distributed to the alcohol beverage market through beer and malt beverage wholesalers, and their alcohol content is similar to other malt beverages in the 4-6% alcohol by volume range.

  Although flavored malt beverages are produced at breweries, their method of production differs significantly from the production of other malt beverages and beer. In producing flavored malt beverages, brewers brew a fermented base of beer from malt and other brewing materials. Brewers then treat this base using a variety of processes in order to remove malt beverage character from the base. For example, they remove the color, bitterness, and taste generally associated with beer, ale, porter, stout, and other malt beverages. This leaves a base product to which brewers add various flavors, which typically contain distilled spirits, to achieve the desired taste profile and alcohol level.

  While the alcohol content of flavored malt beverages is similar to that of most traditional malt beverages, the alcohol in many of them is derived primarily from the distilled spirits component of the added flavors rather than from fermentation.

  —70 Fed. Reg. 194 et seq. (January 3, 2005)[3]

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