Antitrust Law Daily Wrap Up, ADVERTISING NEWS: MillerCoors charged with misrepresenting Blue Moon as “craft beer”, (May 5, 2015)

By Greg Hammond, J.D.

MillerCoors LLC has been named in a class action, claiming that the beer manufacturer engaged in false and deceptive marketing that misled and continues to mislead consumers into believing that Blue Moon beer is an independently brewed, hand-crafted beer. In actuality, the complaint alleges, Blue Moon is not a craft beer, and consumers have paid more than they would have in the absence of such advertising (Parents v. MillerCoors LLC, April 24, 2015).

Evan Parent, a resident of the San-Diego area, alleges that he frequently purchased Blue Moon beer, believing that the beer was a microbrew or “craft” beer due to its advertising, its placement among other craft beers, and the premium price it commanded. To qualify as an American craft brewer, a brewery must: (1) produce less than 6 million barrels of beer annually; (2) be less than 25 percent owned or controlled by a non-craft brewer; and (3) make beer using only traditional or innovative brewing ingredients.

However, Parent alleges that MillerCoors produces over 76 million barrels of beer on an annual basis and can therefore not qualify as a craft brewer. Moreover, Parent asserts that MillerCoors began producing Blue Moon in 1995 to compete with the growing craft beer market and that MillerCoors fraudulently claims that Blue Moon is brewed by Blue Moon Brewing Company; intentionally omits the MillerCoors names from Blue Moon products and advertising; and uses the trademark “Artfully Crafted” to falsely portray Blue Moon as a craft beer.

The complaint alleges that MillerCoors misleads consumers into believing that Blue Moon is an independently brewed, hand-crafted beer. Parent seeks to represent a class of all consumers who purchased Blue Moon beer from a retailer within the State of California for personal, family, or household purposes, and not for resale purposes, during the relevant period. He brought claims under California’s Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act, seeking restitution and disgorgement, injunctive relief, attorney fees, and costs.

The case is No. 37-2015-00013913-CU-BT-CTL.

Attorneys: R. Craig Clark (Clark & Treglio) for plaintiffs.

Companies: MillerCoors LLC; Blue Moon Brewing Co.

News: Advertising