LEX VINI

Tied House Enforcement: TTB Cracks Down on “Pay to Play” Schemes

The federal crackdown on “pay to play” arrangements in the alcohol beverage industry continues.  In a press release issued on Friday, the U.S. Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau announced that it was conducting a joint operation with the Illinois Liquor Control Commission to look into alleged “pay-to-play” in Chicago, the […]

New Alcohol Beverage Regulations Give Licensees Expanded Rights and Privileges in the New Year

Beginning on January 1, 2016, new provisions of the California ABC Act will go into effect that will, among other things, provide industry members with additional rights and privileges related to marketing, events and promotions, and will also create a new Craft Distiller License.   A summary of a few of these important new statutory provisions […]

Diageo and Major Brands Settle Franchise Law Dispute

This is the way most franchise law litigation ends:  not with a bang, but with a whimper.  After over a year of legal jostling, Diageo and Major Brands have apparently reached settlement, according to Missouri news outlets. Suppliers trying to terminate their relationship with a Missouri distributor should closely review a state court opinion issued in the same […]

Franchise Law Trial Begins in Missouri

After 18 months of discovery and motion practice, Diageo and Missouri distributor Major Brands will have their day in court to determine if state franchise law prevents Diageo from terminating its Missouri distribution agreement. In March 2013, Major Brands brought suit in Missouri state court against Diageo and its new Missouri distributor, Glazer’s, claiming that the […]

Five Key Points for Alcohol Beverage Distribution Agreements

Recently, Bahaneh Hobel, Senior Alcohol Beverage Attorney from Dickenson, Peatman & Fogarty, provided the Beverage Trade Network with some insights on the “5 Key Points You Must Cover in Your Distribution Agreements.”  To review her article and learn more about important issues to consider in drafting distribution agreements.  View Article For more information or assistance […]

Update on The Battle of Missouri and Franchise Distribution Law

On June 20, a Missouri Circuit Court judge issued one of the first judicial rulings in a battle that could dramatically affect the relationship between producers and distributors of alcohol. In Missouri, Diageo PLC, Bacardi Ltd., and Pernod Ricard SA are all lobbying to end the state’s franchise laws.  These laws, which ten other states […]

Diageo Americas v. Major Brands: Franchise Law Litigation and Forum Selection

Wineries big and small face difficulties in trying to terminate distribution ageements in franchise law states.  We posted an article a few weeks ago about a lawsuit filed by Diageo Americas, Inc. against its Missouri distributor, Major Brands, Inc.  Diageo has asked the federal district court in Connecticut to issue a declaratory judgment allowing the company […]

Franchise Laws and Diageo’s Recent Distributor Termination Action in Missouri

Ohio,New Jersey,North Carolina,Virginia, and a number of other states restrict a winery’s ability to terminate distributors in that state through “franchise laws.” The Virginia Wine Franchise Act, for example, prevents a winery from unilaterally amending, cancelling, terminating or refusing to renew anyVirginia distribution agreement absent good cause, and good cause is very narrowly defined.  A […]

Can Expanding Your Wine Distribution Expose You to Lawsuits in Other States?

Attorneys, and particularly litigation attorneys such as me, get excited when the U.S. Supreme Court issues new “jurisdiction” proclamations.  The Court did just that in late-June, and the Court’s recent rulings have some impact on wineries. First, I will explain “jurisdiction” and outline prior law regarding jurisdiction.  Then, I will address the Supreme Court’s new […]

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