Craft Brew News # 21 - "Pay to Play" and Cannabis Delivery Drama




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Summary: Craft Brew News – 3/8/19<br><br>(Courtesy of Brewbound.com)<br><br>Massachusetts High Court Rules Against Craft Beer Guild Appeal<br><br>The Supreme Judicial Court of Massachusetts has denied Sheehan Family Companies subsidiary Craft Beer Guild’s attempt to appeal a ruling that it violated laws prohibiting unfair trade practices and illegal “pay-to-play” activities, according to the Boston Globe.<br><br>The state high court agreed with the Massachusetts Alcoholic Beverages Control Commission (ABCC), which found that the beer wholesaler had violated the state law against “price discrimination” — a practice in which distributors sell the same quantity of a product at different prices to different retailers — by offering rebates to some retailers but not others. In a statement to the press, the ABCC said it remains “committed to ensuring an equal playing field in the alcoholic beverages industry” in Massachusetts.<br><br>The ABCC said. “We are pleased with today’s decision from the Supreme Judicial Court, upholding the regulation that prohibits manufacturers and wholesalers from bribing retailers,” <br>As Brewbound previously reported, the ABCC found that Craft Beer Guild, which distributes more than 200 craft brands from throughout Massachusetts, had paid bars about $120,000 from for tap handle placements.<br><br>In the 2017 ruling upheld this week by the Supreme Judicial Court, a Suffolk Superior Court judge ruled that the ABCC, which slapped Craft Beer Guild — which also operates as Craft Brewers Guild — with a 90-day license suspension in 2016 after an investigation revealed the company had “engaged in a pervasive illegal enterprise involving numerous retailers and corporations that spanned at least five years.” In lieu of suspension, Craft Beer Guild agreed to pay a $2.6 million fine.<br><br>Drizly Files Lawsuit Against Co-Founder, Eyes Cannabis Delivery<br><br>A lawsuit filed this week by Boston-based on-demand alcohol delivery company Drizly against Nick Rellas, its former co-founder and CEO, revealed the e-commerce company’s plans to expand into medical and recreational cannabis delivery later this year, according to Law 360.<br><br>The lawsuit alleges that Rellas, who exited Drizly in August, violated a 1-year non-compete and a nondisclosure agreement by attempting to start his own e-commerce cannabis delivery business, the outlet reported.<br><br>“Beginning in late 2017 and continuing through his tenure as CEO, Drizly decided to enter an adjacent market for another highly controlled product: legalized medical and recreational cannabis,” the lawsuit said. “Drizly has approached potential commercial retail partners, explored the best path to market, consulted with state regulatory officials, and crafted a market entry plan.”<br><br>US Supreme Won’t Hear Consumers’ MegaBrew Challenge<br><br>The U.S. Supreme Court has passed on hearing beer consumers’ bid to block Anheuser-Busch InBev’s $107 billion acquisition of rival SABMiller, according to Law 360.<br><br>A group of consumers had filed a lawsuit arguing that allowing the MegaBrew merger to proceed would have constricted the beer market, the outlet reported.<br>In October, the merger cleared its final hurdle to approval as a federal judge signed a “Modified Final Judgment” — more than two years after the Department of Justice initially green-lit the acquisition.<br><br>New Holland Receives Approval For Pabst-Branded Whiskey<br><br>New Holland Brewing Co. recently received federal label approval for a Pabst Brewing Co.-branded whiskey, signaling a contract distilling arrangement between the two companies, according to MiBiz.com.<br><br>Recall that Michigan beer company inked a marketing, sales and distribution agreement with Pabst in December 2016. Additionally, Pabst already sells a bourbon under the Not Your Father’s label.<br><br>Subscribe to Craft Beer Storm Podcast iTunes: <br>