Settlement Reached in Kirin® False-Ad Lawsuit

Anheuser-Busch Cos. has reportedly settled a consumer class action alleging
that Kirin® beer is represented as a Japanese import even though the
products sold in the United States are brewed with domestic ingredients in
California and Virginia. Suarez v. Anheuser-Busch Cos., No. 2013-33620-CA-01
(Fla. Cir. Ct., 11th Jud. Cir., settlement preliminarily approved December 17,
2014).

The October 2013 complaint alleges that Kirin’s labeling falsely implied that its
products remained imported despite a 1996 agreement between the Japanese
company and Anheuser-Busch to manufacture the beer in the United
States and a 2006 deal that gave Anheuser-Busch the brand’s marketing and
sales responsibilities. The complaint alleges that the packaging includes, in
fine print, a statement clarifying that the beer is “[b]rewed under Kirin’s strict
supervision by Anheuser-Busch, in Los Angeles, CA and Williamsburg, VA,” but
that the statement is not visible to consumers before purchase. Under the
proposed settlement agreement, consumers will receive 50 cents per six-pack
and $1 per 12-pack of 12-ounce bottles as well as 10 cents per individual
bottle or can, up to $50 for households with proofs of purchase or $12 for
those without. Anheuser-Busch agreed to feature the clarifying statement
more prominently on the bottles and add it to consumer-facing packaging,
and it will stop describing the beer as imported. Class counsel will reportedly
receive an award of $1 million. See Law360, January 5, 2015.

Issue 550