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 alcohol beverage producer’s attempt to terminate the distribution agreement violated state’s franchise law.  At the time of the attempted termination, according to Major Brands, Diageo products accounted for 23% of the distributor’s gross revenues.

Jury selection began on Monday, September 15.  We will continue to provide updates as the case unfolds.