A bipartisan group of U.S. representatives has proposed legislation that would reduce excise taxes levied on the first two million barrels of beer sold annually by small brewers. Reps. Erik Paulsen (R-Minn.) and Richard Neal (D-Mass.) were joined by Reps. Peter DeFazio (D-Ore.), Earl Blumenauer (D-Ore.), Patrick McHenry (R-N.C.), and Patrick Meehan (R-Penn.) in proposing the “Small Brewer Reinvestment and Expanding Workforce Act” (Small BREW Act) to impose an excise tax rate of $3.50 per barrel on the first 60,000 barrels and $16 per barrel on the next 1,940,000 barrels. If passed, the law would apply only to brewers that produce six million barrels or fewer each year. “Small brewers—long an important part of American culture and history—have enjoyed a tremendous growth in popularity in recent years,” Meehan said in a January 8, 2015, press release. “But while our brewing industry has evolved, our tax code hasn’t evolved with it.…
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A January 5, 2015, post on NPR’s “The Salt” blog reports that trademark disputes have come to a head in the craft brewing market, where more than 3,000 companies compete for a dwindling number of pithy beer names. Although many brewers work to resolve issues outside the courtroom, there has also been an increase in litigation alleging trademark violations focused on overlapping product names, font styles and label designs. In some cases, brewers that have used beer names for decades have come under fire from new companies looking to trademark them. In particular, the article notes that many hop-related puns—such as “Hopscotch” and “Bitter End”—are currently used on more than one product. “American trademark law lumps breweries together with wineries and distilleries, making the naming game even more chancy,” concludes NPR. “Even imagery can be trademarked and protected in court.” Issue 550
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…
A consumer has filed a putative class action in California state court alleging that Anheuser-Busch’s “Lime-A-Rita” malt beverages have too many calories and carbohydrates to be sold under the Bud Light Lime® label. Cruz v. Anheuser-Busch, LLC, No. BC563150 (Cal. Super. Ct., Los Angeles Cty., filed November 12, 2014). The plaintiff alleges that she purchased Bud Light Lime Lime-A-Rita® believing it to be low in calories and carbohydrates, but later learned that a serving of 8 fluid ounces contains between 192 and 220 calories and 22.8 to 23.6 g of carbohydrates compared to Bud Light’s 110 calories and 6.6 g of carbohydrates. “In general, ‘light’ may generally describe a zero calorie or a reduced calorie food, and consumers such as Plaintiff and the Class understand the ‘light’ label on a product that has a reduced or low number of calories,” the complaint asserts. The plaintiff attributes the level of calories…
Reversing a lower-court decision, a California appeals court has ruled that state dram shop statutes—meant to protect some sellers of alcohol beverages from liability for injuries related to the beverages’ consumption—do not provide immunity for City Brewing Co. in a lawsuit alleging that the company was negligent in producing Four Loko. Fiorini v. City Brewing Co., No. F067046 (Cal. Ct. App., 5th Dist., order entered November 6, 2014). After drinking two 23.5-ounce cans of Four Loko, the plaintiff’s son was shot to death by police in October 2010. The plaintiff alleged that City Brewing, which brewed, bottled and labeled Four Loko, was liable for negligence for producing an alcohol beverage in a nonresealable can apparently containing alcohol “equivalent to five or six 12-ounce cans of beer” and “as much caffeine as two cups of coffee” because “combining alcohol, a depressant, with caffeine and other stimulants created a product that had unreasonably…
Lucasfilm Ltd. has filed a notice of opposition to Walton Street Brewing Corp.’s application to the U.S. Patent and Trademark Office (USPTO) to register “Empire Strikes Bock” as a mark. Lucasfilm argues that the name will cause confusion with and dilute goods related to its 1980 film"The Empire Strikes Back," which, as Bloomberg BNA notes, is not associated with any active trademarks but may be famous enough to be protected under common law. The production company also claims that granting the “Bock” trademark will cause confusion with its existing mark—Skywalker Vineyards—in the alcohol industry. In an irreverent video response, Walton Street’s owner explains that the brewery has sold “Bock” on tap at its pub for several years and now intends to bottle it, and it never intended to cause any confusion with its “parody” beer. In the background, a person in a Stormtrooper costume appears to stir beer with a lightsaber,…
Adopting a magistrate judge’s recommendation, a Texas federal court has ruled that Texas can intervene in a lawsuit brought by brewer Alamo Beer Co. alleging that Old 300 Brewing infringed Alamo Beer’s trademark for using the silhouette of the Alamo building on its labels. Alamo Beer Co. LLC v. Old 300 Brewing LLC, No. 14-285 (W.D. Tex., order entered October 14, 2014). The state of Texas filed a motion to intervene in April 2014, asserting that its interests in the Alamo trademark were not adequately represented by either party. A magistrate judge issued a report on the matter in May recommending that Texas be allowed to join the lawsuit, and Alamo Beer argued to the court that the magistrate judge had failed to properly analyze two factors of mandatory intervention and that the state lacked the right to intervene under trademark law. Reviewing Alamo Beer’s concerns, the court rejected its arguments and…
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…
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…
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…
