The U.K. Advertising Standards Authority (ASA) has upheld two complaints against a website advertising Brewmeister Ltd.’s “Snake Venom” beer as “THE WORLD’S STRONGEST BEER.” In response to the first complaint, which disputed the beer’s stated alcohol by volume (ABV),the agency questioned whether the independent analysis that determined Snake Venom’s ABV differed from the process used for standard beer. Noting that the beer’s fermented alcohol content was concentrated via freeze distillation and possibly augmented with ethyl alcohol, ASA found the advertisement misleading because “consumers would interpret the claim ‘Snake venom 67.5%’ to mean the product had an alcohol volume of 67.5%, as per the standard ABV measure, without having been through any other additional processes to standard beer.” ASA also upheld its own complaint challenging “whether the ad implied the drink may be preferred because of its alcohol or intoxicating effect, and whether the factual information about the strength of the…
Tag Archives alcohol
A Florida federal court has denied Anheuser-Busch’s motion to dismiss a case accusing the beverage company of misleading consumers into believing that Beck’s beer was still brewed in Germany, finding that the plaintiffs adequately pleaded their claims. Marty v. Anheuser-Busch Cos., No. 13-23656 (S.D. Fla., order entered September 5, 2014). In 2012, Anheuser-Busch moved production of Beck’s, brewed in Germany from 1873, to St. Louis, Missouri. The company added a “Product of the U.S.A.” disclaimer to the Beck’s packaging, but the plaintiffs argued that the disclaimer was too small, too difficult to read due to its white script on a silver background and blocked by the cans or bottles in the carton, and the court agreed, allowing the unjust enrichment and consumer protection violations claims to proceed. Citing the plaintiffs’ statements that they stopped buying Beck’s when they learned of its brewing source, the court granted Anheuser-Busch’s motion to dismiss…
A New York federal court has allowed Lanham Act claims for the Stolichnaya trademark to proceed in a long-running case between a Russian state-chartered company and several international beverage companies. Fed. Treasury Enter. Sojuzplodoimport v. SPI Spirits Ltd., No. 14-712 (U.S. Dist. Ct., S.D.N.Y., order entered August 25, 2014). Federal Treasury Enterprise Sojuzplodoimport (FTE), owned by the Russian Federation, alleges that it owns the Stolichnaya trademarks, but SPI Spirits purports to be the private successor to the state-owned company that owned the trademarks before the Soviet Union dissolved and several public entities became private companies. The Second Circuit previously held that FTE lacked standing because it was neither an assign nor legal representative under the Lanham Act. Since that ruling, the Russian Federation assigned its rights to the Stolichnaya trademark to FTE, and the New York federal court has found that the assignment cures FTE’s previous lack of standing issue.…
Prichard’s Distillery Inc., maker of Benjamin Prichard’s Double Barreled Bourbon, has filed a lawsuit against Sazerac Co. alleging that the liquor manufacturer has violated its trademark in “double barreled” by selling A. Smith Bowman Limited Edition Double Barrel Bourbon Whiskey and Buffalo Trace Experimental Collection Double Barreled, a bourbon. Prichard’s Distillery Inc. v. Sazerac Co., No. 14-1646 (U.S. Dist. Ct., M.D. Tenn., filed August 11, 2014). Prichard’s claims that it has owned a trademark on the use of “double barreled” in liquor sales since 2002, and the term comes from Prichard’s distilling process, which involves aging the bourbon in one barrel, diluting it to a lower proof, then aging it in a second barrel to reinforce the flavor. The company seeks an injunction preventing Sazerac from using “double barreled” on its products as well as damages multiplied due to Sazerac’s “willful and wrongful conduct.” Issue 535
Ruling against Val-de-Travers absinthe producers, the Swiss Federal Administrative Tribunal has reversed a 2010 Federal Office of Agriculture decision confirming the “protected geographical indications” registration of the terms “absinthe,” “fée verte”—the green fairy and “la bleue.” Guignon v. Ass’n interprofessionnelle de l’Absinthe, No. B-4820/2012 (Tribunal administratif fédéral, decided August 13, 2014). The court said in a press release that it believed “that this denomination refers to a type of good, regardless of its origin, and not to a product originating specifically from Val-de-Travers.” According to the court, just a small percentage of people in Switzerland associate the terms with this region, a district in the Neuchâtel canton. The president of the absinthe association, which registered the terms on behalf of the producers and defended the appeals filed by distillers in France, Germany and Switzerland, reportedly characterized the decision as “incomprehensible” because most of Switzerland’s absinthe is produced in Val-de-Travers and the ruling…
According to New York Southern District U.S. Attorney Preet Bharara, a man who allegedly operated a wine counterfeiting laboratory from his California residence between 2004 and 2012 has been sentenced to 10 years in prison. Rudy Kurniawan apparently became a prominent and prolific U.S. dealer of rare and expensive wine that was actually lower-priced wine blended to mimic the taste and character of far better wines. He allegedly purchased empty bottles of rare and expensive wines—some of them from New York City restaurants—poured his mixtures into them, sealed the bottles, and then attached counterfeit labels that he created. The fakes were then sold to wealthy wine collectors through auctions and by direct sales. According to a news source, Kurniawan was eventually caught through misspellings and other packaging errors, including early 20th century dates on some bottles that pre-dated their actual production. Kurniawan also allegedly fraudulently obtained a $3-million loan from a…
The Federal Trade Commission (FTC) has approved a modified final order in proceedings against Phusion Projects, LLC, which markets the malt beverage Four Loko, to account for the Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau’s (TTB’s) denial of proposed changes to the company’s product labels. In re Phusion Projects, LLC, No. C-4382 (FTC, order entered July 24, 2014). Additional information about FTC’s January 2014 order and agreement with the company appears in Issue 471 of this Update. FTC alleged that Phusion and its principals “falsely claimed that a 23.5-ounce, 11 or 12 percent alcohol by volume can of Four Loko contains alcohol equivalent to one or two regular 12-ounce beers, and that a consumer could drink one can safely in its entirety on a single occasion.” The modified final order acknowledges the company’s attempt to comply with the January agreement by seeking TTB’s approval to display an…
A federal court in New Jersey has denied without prejudice the motion to certify three classes of multi-state claimants alleging that Beam Global Spirits & Wine falsely markets and sells its “Skinnygirl Margarita” product as “all natural” and a “healthy alternative to other commercial Margarita products.” Stewart v. Beam Global Spirits & Wine, Inc., No. 11-5149 (U.S. Dist. Ct., D.N.J., order entered June 26, 2014). Under Third Circuit Court of Appeals precedent, the court determined that class membership, essentially via affidavit relying on potentially faulty memory, was not sufficiently ascertainable. The plaintiffs will have the opportunity to renew their motion at any appropriate time “specifically taking into account the rulings in Marcus, Hayes, and Carrera.” Among other matters, the court rejected the plaintiffs’ claim that the affidavits could be cross-checked using social media—for example, the “likes” or comments on the defendants’ Skinnygirl Facebook pages, or the companies’ consumer email records—or…
An Indiana federal court has upheld a state statute that limits the sale of cold beer to package liquor stores, barring other beer sellers like convenience stores from selling beer cooler than room temperature. Ind. Petroleum Marketers & Convenience Store Ass'n v. Huskey, No. 13-784 (S.D. Ind., order entered June 16, 2014). Indiana law divides beer sales permits into three categories: (i) a beer retailer permit for restaurants and bars; (ii) a dealer permit for package liquor stores; and (iii) a beer dealer permit for convenience stores, grocery stores and drug stores. The beer dealer permit places limits on retailers, prohibiting them from selling alcohol on Sunday, establishing a minimum age of clerks who can sell the beer, and barring them from selling beer cooled, chilled or iced. An association representing convenience stores challenged the constitutionality of the permit limitations in May 2013, arguing that the statute violated the association’s…
The Centers for Disease Control and Prevention (CDC) has published a report that attributes the loss of approximately 2.5 million years of potential life, one in 10 deaths of working-aged adults and $223.5 billion in health-care and productivity costs annually to excessive drinking. The study examined data from CDC’s Alcohol-Related Disease Impact application for 2006 to 2010 to calculate the number of deaths that could be attributed to alcohol based on a list of 54 alcohol-related causes, including immediate deaths due to, for example, alcohol poisoning, as well as deaths from alcohol-related diseases like liver cirrhosis. The researchers focused especially on excessive alcohol use, defined as binge drinking (on a per-occasion standard), heavy drinking (on a drinks-per-week standard), pregnant drinking, and drinking by minors. “This analysis illustrates the magnitude and variability of the health consequences of excessive alcohol consumption in the United States,” the researchers conclude. "More widespread implementation of…
