Bell's battles "Big Beer" ... again

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article from MLive.com / Kalamazoo Gazette

 

Bell's Brewery lawsuit challenges beer distribution in Lansing area

 

_{by John Liberty | Kalamazoo Gazette}

 

_{Monday May 11, 2009, 9:40 AM}

 

KALAMAZOO -- Bell's Brewery Inc. is in a fight with one of its distributors, and several breweries and wholesalers will be paying close attention.

 

The situation spotlights a debate about the state's Beer Franchise Code and its distribution system, as well as the battle of "Big Beer" against craft beer.

 

The Kalamazoo-based craft brewery filed a lawsuit late last month in Kalamazoo County Circuit Court against its Lansing-based distributor, Classic Wines Ltd., seeking to stop the sale of distribution rights.

 

Classic Wines is trying to sell its distribution rights to M&M Distributors Inc., which is also an Anheuser-Busch InBev ("A-B") distributor, according to the lawsuit. The lawsuit claims that M&M's loyalties to A-B will not allow M&M to fairly promote and sell Bell's brands. Bell's, the largest beer producer in the state, refuses to consent to the proposal by Classic Wines to sell the distribution rights because it "does not meet the material and reasonable qualifications and standards required by Bell's."

 

Officials of Classic Wines Ltd. and Bell's Brewery Inc. President Larry Bell have had no comment on the matter.

 

The eight-page complaint addresses Anheuser-Busch's control of the U.S. beer market and its efforts to "stifle competition" from other Big Beer companies and craft brewers.

 

Classic Wines is the fourth-largest distributor of Bell's in the state, selling about 55,000 cases a year, Bell's president Larry Bell said. Sixty-five percent of Classic Wines sales are of Bell's brands, according to the lawsuit.