The Michigan Liquor Control Commission has reportedly reversed its decision to ban sales of a Maryland-based beer with a controversial name. Flying Dog Brewery has received approval to promote and sell its “Raging Bitch” Belgian-Style IPA in Michigan. According to Flying Dog, the commission has barred the beer’s sale in Michigan since 2009, claiming its label was “detrimental to the public health, safety and welfare.” The brewery subsequently filed a First Amendment lawsuit in a Grand Rapids federal court. More information about the lawsuit appears in Issue 388 of this Update. The commission switched its position after the U.S. Supreme Court recently determined that states cannot engage in “content-based discrimination,” according to a news source. Although calling the move “a victory for craft beer,” Flying Dog has announced that it has no plans to drop its pending lawsuit. “Most companies would take what Michigan did and say, ‘Great, I can…
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Insurance companies with policies covering Phusion Projects, Inc., which makes the caffeinated alcohol beverage Four Loko®, have filed a summary judgment motion in their declaratory judgment action against the company, claiming that a policy exclusion unambiguously frees them from defending or indemnifying the beverage maker. The Netherlands Ins. Co. v. Phusion Projects, Inc., No. 11-1253 (N.D. Ill., filed June 22, 2011). The companies contend that their commercial general liability and commercial umbrella policies have liquor liability exclusions that apply to actions pending in Florida, Illinois and New Jersey alleging that “Four Loko caused a particularly dangerous kind of intoxication” and seeking monetary damages for deaths and injuries. Details about a similar insurance coverage lawsuit involving other insurers appear in Issue 396 of this Update.
Czech and U.S. brewers seeking to market their beers under the name “Bud,” have apparently been at odds since the early 1900s. In the latest installment of the dispute, the Court of Justice of the European Communities has set aside a decision of the Court of First Instance which allowed the Czech brewer to oppose Anheuser-Busch’s registration of “Bud” in Europe. Anheuser-Busch Inc. v. Budějovický Budvar, No. C 96-09 (E.C.J., decided March 29, 2011). While the Court of Justice upheld some of the lower court’s rulings, it determined that the lower court erred (i) in the factors it relied on to decide if a “sign,” or trademark, in opposition to a new registration was used in a sufficiently significant manner, and (ii) in holding that the use of the sign in opposition does not necessarily have to occur before the date of the application for new registration. According to the Court…
Flying Dog Brewery has filed a lawsuit under the First Amendment, alleging that the Michigan Liquor Control Commission and its individual members violated its free speech rights by prohibiting the company from selling Raging Bitch Twentieth Anniversary Belgian-Style India Pale Ale. Flying Dog Brewery, LLP v. Mich. Liquor Control Comm’n, No. __ (W.D. Mich., filed March 25, 2011). According to the complaint, a British artist, who once worked with journalist Hunter S. Thompson, designed Flying Dog’s beer labels, including the one at issue. The defendants rejected Flying Dog’s application for a license to sell the pale ale in the state, allegedly finding “that the proposed label which includes the brand name ‘Raging Bitch’ contains such language deemed detrimental to the health, safety, or welfare of the general public.” Claiming loss of sales and goodwill, the plaintiff alleges that its label constitutes expression protected by the First Amendment and seeks preliminary and…
The U.K. Department for Business, Innovation and Skills has announced plans to relax regulations governing the sale of beer, wine and unwrapped bread loaves. Science Minister David Willetts apparently confirmed the government’s intention to scrap laws stipulating that unpackaged bread “weighing more than 300g must be made up in quantities of 400g or multiples of it.” He also indicated changes to the beer and wine laws, which currently state that pubs and other premises cannot sell wine “in measures less than 125ml while beer must be sold in thirds, halves or multiples of half-pints.” Under the new rules, these businesses will be able to sell wine in measures under 75ml; beer in “schooners” that are equal to two-thirds of a pint; and fortified wine in smaller sizes of 50ml and 70ml. “This is exactly the sort of unnecessary red tape the government wants to remove. No pub or restaurant should…
The American Organic Hop Grower Association (AOHGA) has reportedly persuaded a National Organic Standards Board (NOSB) subcommittee to reverse a recommendation that aimed to keep hops on the National List of Allowed and Prohibited Substances, which governs the use of synthetic and non-synthetic materials in organic production and handling. In advance of an October 25-28, 2010, public meeting in Madison, Wisconsin, NOSB had requested feedback on a number of National List exemptions, including one that currently permits the use of non-organic hops in organic beer. Although the NOSB Handling Committee initially backed a continuation of this policy due to the limited availability of organic hops, AOHGA faulted NOSB for holding hops “to a higher standing than virtually any other agricultural product” by allegedly insisting that all 150 varietals become available in organic form before removal from the list. AOHGA thus urged organic beer brewers and other supporters to petition the…
The U.S. Department of Agriculture’s National Organic Standards Board (NOSB) has announced an October 25-28, 2010, public meeting in Madison, Wisconsin, to review proposed recommendations for the National List of Allowed and Prohibited Substances, which governs the use of synthetic and non-synthetic materials in organic production and handling. NOSB will accept written comments and requests for oral presentations until October 12, 2010. The agenda covers petitioned material and sunset review recommendations for a number of substances, as well as proposed guidance on nanotechnology, “Made With” organic claims and changes to the NOSB policy and procedure manual. In particular, the meeting will address the NOSB Materials Committee’s recommendations for prohibiting engineered nanomaterials in organic production, processing and packaging. According to the committee, concerns about nanotechnology include “the ability of the regulatory agency, the National Organic Program (NOP), to fully control two of the major sources of contamination in final organic food…
The Johns Hopkins Bloomberg School of Public Health’s Center on Alcohol Marketing and Youth (CAMY) has issued a report showing that alcohol companies “have largely met the industry’s voluntary standards of not placing ads in magazines with 30 percent or more youth readership.” Nevertheless, the report singled out 16 brands allegedly responsible “for half of the advertising placed in publications more likely to be seen per capita by youth than adults.” Researchers apparently used gross rating points, as opposed to gross impressions alone, to measure “how much an audience segment is exposed to advertising per capita.” In addition to tracking youth exposure to alcohol advertising, the report focused on the prevalence of youth exposure coming from overexposure. According to CAMY, “Advertising in media in which youth ages 12 to 20 make up more than 15 percent of the audience generally results in these youth being ‘overexposed,’ that is, they are…
U.S. Senator Chuck Schumer (D-N.Y.) has asked the Federal Trade Commission (FTC) to investigate the marketing of certain caffeinated malt beverages that “seem to be explicitly designed to attract underage drinkers” and to determine whether new enforcement actions are warranted. In a July 12, 2010, press release, Schumer singled out popular drinks “that appear hip with flashy colors and funky designs” but contain 12 percent alcohol, which is more than twice the amount in a bottle of beer or glass of wine. “However, the labeling and packaging of these beverages renders them nearly indistinguishable from ordinary energy drinks,” Schumer said. “Some stores even stock them directly next to other energy drinks causing further confusion for legal and illegal consumers.” Schumer called the marketing “extremely troubling” in a letter to FTC Chair Jon Leibowitz. “Frankly, it looks to me as if manufacturers are trying to mislead adults and business owners who…
The Center for Digital Democracy and the Berkeley Media Studies Group have released a report, “Alcohol Marketing in the Digital Age,” that discusses some of the specific ways that alcohol beverage companies are conducting contemporary advertising campaigns using digital media, data collection, behavioral targeting, social media, and online gaming and video that allegedly appeal to underage youth. The report, which was reportedly submitted to the Federal Trade Commission (FTC), calls on that agency, as well as the state attorneys general, to “investigate the data collection, online profiling, and targeting practices of alcohol beverage companies online, including social media data-mining technologies. The FTC and other regulators need to determine whether alcohol beverage ad targeting is reaching specific young people and their networks.” While the report notes that beer and alcohol companies have “a self-regulatory code of ethics that includes provisions for limiting exposure to marketing messages to underage youth,” its authors…
