Ohio beer distributors sue MillerCoors
Written on September 5, 2008
In a move underscoring the fallout from the decision by MillerCoors LLC to decrease costs by reducing distributorships, two Ohio beer distributors have filed a lawsuit contending their terminations were illegal.
The lawsuit filed in federal court in Columbus this week charges that MillerCoors’ distributorship terminations in the state violate an Ohio law prohibiting beer franchises from being terminated “without just cause and notice.”
The lawsuit, reported by The Wall Street Journal Thursday, was filed by Beverage Distributors Inc., of Cleveland, and AFP Distributors Inc., of Glouster, in Athens County, both longtime Miller Brand distributors.
“They have attempted to use the creation of MillerCoors for the improper and unlawful purpose of changing the existing distribution network for the Miller Brands and circumventing franchise protection statutes in the United States, including Ohio law,” the lawsuit said.
The lawsuit asks a judge to overturn the two distributors’ terminations and for a court order barring other distributors from assuming their distribution territories.
MillerCoors was created in early July with the merger of Coors Brewing Co http://payday-z.com. in Golden, Colo., and Miller Brewing Co. in Milwaukee. The company, which is moving its headquarters to Chicago, operates a brewery in Trenton, with about 650 employees.
Filed in: business.