A class action lawsuit alleges that large brewer MillerCoors calls its Blue Moon product a “craft beer” in order to charge consumers more money.
MillerCoors joins popular whiskey brands Jim Beam and Maker’s Mark, which were sued last year in a rising trend of suits over labeling — in particular, that claims of exceptional craftsmanship, which booze makers make in order to charge higher prices, are exaggerated.
“I think we are at a critical mass with these types of lawsuits,” said Ted Craig, a lawyer with GrayRobinson. “Lawyers [are] trying to be very creative and hitting up new types of mislabeling or marketing misrepresentation lawsuits.”
There are currently about six to eight other lawsuits pending against various liquor manufacturers over similar issues. For instance, Maker’s Mark, Jim Beam Whiskey and Tito’s Vodka are being sued for allegedly labeling their products as “hand-made,” though the lawsuits argue they are distilled through a mechanized process.
The lawsuits claim the “hand-made” claim on the label prompted individuals to overpay.
Whiskey makers could be sued if they label their products “small batch” or “premium,” since those terms are ambiguous, said Robert Lehrman, a partner with Lehrman Beverage Law at bevlaw.com.
The trend isn’t just limited to beer and liquor. KIND snack bars were slapped with a class action lawsuit after the Food and Drug Administration found certain products were being labeled as healthy but didn’t meet the federal definition.
Technically the Federal Trade Commission regulates false advertising and the FDA regulates labels on foods and drinks.
However, a little-known office of the Treasury Department approves liquor and beer labels to ensure they have the correct ingredients. The division, called the Alcohol and Tobacco Tax and Trade Bureau, isn’t able to verify the labeling for all of the claims, Lehrman said.
“There are just so many terms that they can touch with a 10-foot pole,” he said.
In addition, there is no standard for craft beer to measure Blue Moon against, Lehrman added.
A few years ago, California resident and beer aficionado Evan Parent learned that Blue Moon was actually made by MillerCoors.
Parent sued because he believes he was duped and had paid higher prices on what he believed was a “craft beer.” The proposed class is anyone who bought Blue Moon in California over the past four years.
A craft beer usually runs about two to three dollars more for a six-pack compared to one from a larger brewer, the lawsuit claims.
The lawsuit filed late last month noted the label for Blue Moon didn’t say craft, but it was marketed as “artfully crafted” and did not mention MillerCoors.
The lawsuit cites a definition from a craft brewer industry group called the Brewer’s Association. A brewer of craft beer must produce less than 6 million barrels of beer annually, be less than 25 percent owned by a non-craft brewer and make beer only using traditional or innovative ingredients.
Blue Moon does not meet the criteria since it is owned by MillerCoors.
However, there is no federal definition of “craft beer,” and the standard from the craft brewing industry may not fly in court, said Craig.
While there isn’t a legal definition, “people generally know that craft beer is beer produced by small or medium-sized breweries, and MillerCoors is one of the largest brewers in the world,” Jim Treglio, an attorney for Parent, told the Washington Examiner.
He added that another problem is that MillerCoors didn’t put its name on the label or marketing for Blue Moon, allowing it to deceive customers.
MillerCoors did not return a request for comment.
The outcome of this lawsuit and others could change how products are labeled. Lehrman said he is already fielding calls from companies spooked over whether their label could be ambiguous.
“Things are changing fast,” he said.
