The U.K. Advertising Standards Authority (ASA) has dismissed a competitor’s complaint alleging that Unilever UK Ltd.’s commercial for its pyramid-shaped teabags “exaggerated the capability and performance of the advertised product.” Tata Global Beverages reportedly argued that (i) the visual demonstration used in a TV commercial for PG Tips tea was misleading, (ii) Unilever’s claim that “the tea has more room to move freeing the great fresh taste” could not be substantiated, and (iii) “the comparison with a round teabag denigrated Tata’s brand ‘Tetley’ because they believed that they were an identifiable competitor and that the ad portrayed the brand in a negative light.” According to ASA, Unilever not only countered that the visual demonstration in question “imitated consumer behavior when making tea,” but noted that the claims reflected the results of product testing and mathematical modeling supplied to ASA for review. Denying that the ad made a direct comparison to…
Tag Archives beer
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…
A multidistrict litigation (MDL) court in Ohio has dismissed with prejudice six putative class actions involving plaintiffs from California, Colorado, Florida, New Jersey, Ohio, Pennsylvania, and Texas, alleging that Anheuser-Busch “routinely and intentionally adds extra water to its finished product to produce malt beverages that ‘consistently have significantly lower alcohol content than the percentages displayed on its labels.’” In re Anheuser-Busch Beer Labeling, Mktg. & Sales Practices Litig., MDL No. 13-2448 (N.D. Ohio, order entered June 2, 2014). Additional details about the litigation and the order consolidating the cases appear in issues 473 and 487 of this Update. Federal regulations allow malt beverages containing 0.5 percent or more alcohol by volume a tolerance of 0.3 percent in the alcohol content, “either above or below the stated percentage of alcohol,” and the affected jurisdictions have adopted or refer to these regulations in their statutes and regulations. The defendant argued in its motion…
The U.K. Advertising Standards Authority has reversed an earlier decision upholding two complaints alleging that Heineken UK Ltd.’s print and TV advertisements gave the impression that its Kronenbourg 1664 beer was brewed in France and made primarily from French hops, despite text disclaimers stating that the product was “Brewed in the UK.” According to ASA, Heineken argued that Kronenbourg 1664 “could correctly and reasonably be described as a ‘French beer’ because of its heritage, the origin of its recipe and the use of the Strisselspalt hop, as well as its ownership and the yeast type used.” In particular, the company noted that the aromatic Strisselspalt hop— though not the sole hop used in the beer—was the key ingredient in creating the beer’s final character and taste, attributes that could not be captured “from a simple calculation of the proportion in which [the Strisselspalt hop] featured in the recipe.” In its…
After a three-week trial, a jury has reportedly cleared Anheuser-Busch of sex discrimination in a suit brought by former executive Francine Katz, who had alleged that she was paid less than her male counterparts because of her gender. Katz v. Anheuser-Busch Inc., No. 922-CC09513 (St. Louis Circ. Ct., verdict rendered May 16, 2014). Katz worked at Anheuser-Busch as vice president of communications and consumer affairs from 2002 to 2008, when she left following InBev NV’s November 2008 acquisition of the company. During the acquisition process, Katz learned that her compensation was lower than the pay received by her male colleagues on the strategy committee, and she filed a suit alleging violations of the Missouri Human Rights Act in 2009. Following the jury’s decision, Katz told the media that she hoped she had helped to draw attention to the issue of gender bias in compensation. See St. Louis Post-Dispatch, May 17,…
Texas has filed a motion to intervene in Alamo Beer Co. LLC’s trademark infringement suit against Old 300 Brewing LLC, asserting that the state has the rights to the “Alamo” mark. Alamo Beer Co. LLC v. Old 300 Brewing LLC, No. 14-285 (W.D. Tex., motion filed April 28, 2014). Filed in March 2014, Alamo Beer’s original complaint alleged that Old 300 Brewing (doing business as Texian Brewing Co.) infringed on its mark by using the silhouette of the Alamo on Texian beer labels, which image Alamo Beer has used and federally registered as a trademark for beer labeling since 1997. Texas argues that it has registered and common law rights to the use of the Alamo Mission’s likeness in commerce. In 2013, the state began registering the Alamo silhouette in a variety of categories, including blankets, apparel, jewelry, leather goods, digital media, packaged foods, and museum services. In the category…
The U.K. Advertising Standards Authority (ASA) has reportedly dismissed a complaint about a controversial National Health Service advertisement showing a tumor growing in the bottom of a beer glass with the tag line “the more often you drink, the more you increase your risk of developing cancer.” Promoted by the alcohol awareness charity Balance and shown in a section of England reported to have the country’s highest rates of alcohol related health problems, the advertisement depicts a man preparing a meal and pouring a beer into a glass. As the man drinks the beer, a tumor appears to slowly grow at the bottom of the glass and slide toward his mouth. A voice-over then states, “The World Health Organization classifies alcohol as a group one carcinogen … The more you drink and the more often you drink, the more you increase your risk of developing cancer.” Calling the ad “misleading and irresponsible,…
After reportedly receiving more than 2,000 comments criticizing its proposal to tighten regulations concerning the transaction of spent grain between brewers and farmers, the U.S. Food and Drug Administration (FDA) has apparently decided to revise its original plan, stating that it will release an amended version of the proposal this summer. According to news sources, brewers, who for years have donated or sold their spent grain to farmers to use as animal feed, were outraged at the proposed regulation—part of FDA’s Food Safety Modernization Act—claiming it would turn an ages-old practice into a heavy burden, requiring them to alter processes and testing requirements and add additional recordkeeping tasks. Brewers also note that under the currently proposed terms, they would either be required to dry and package spent grain before sending it off as animal feed or to discard it entirely, leaving it to sit in landfills. See VoiceofSanDiego. org, April 3, 2014;…
According to New York Attorney General (AG) Eric Schneiderman, Phusion Projects, LLC, the company that makes Four Loko flavored malt beverages, has agreed to settle allegations by 20 attorneys general and the San Francisco city attorney that the company marketed and sold its products in violation of consumer protection and trade practice statutes. In re Investigation by Eric T. Schneiderman, N.Y. AG of Phusion Projects, LLC, No. AOD 14-075 (N.Y. AG, Bureau of Consumer Frauds & Protection, March 25, 2014). Without admitting any liability, the company has agreed not to (i) promote the misuse of alcohol or mixing flavored malt beverages with caffeinated products; (ii) manufacture, market, sell, or distribute any caffeinated alcohol beverages; (iii) provide materials to wholesalers, distributors or retailers promoting mixing flavored malt beverages with caffeinated products; (iv) sell, distribute or promote alcohol beverages to underage persons or hire underage persons to promote these products; (v) use college-related…
The company that makes Four Loko, a caffeinated malt liquor beverage allegedly responsible for the deaths of five consumers, has reached a settlement with two Liberty Mutual Insurance Co. units which had sought a declaration that a policy exclusion freed them from defending or indemnifying the beverage maker in the underlying lawsuits. The Netherlands Ins. Co. v. Phusion Projects, Inc., No. 12-7968 (N.D. Ill., stipulation of dismissal filed March 11, 2014). The settlement terms have not been disclosed. Details about a Seventh Circuit ruling on the insurance carriers’ duty to defend appear in Issue 508 of this Update. Issue 517
