Anheuser-Busch settles claim over Kirin beer’s origin

Always read the fine print first before buying your beer. Early this year, Anheuser-Busch settled a class suit filed against it by two Miami residents who had alleged that the company was deceptively advertising Kirin beer as imported from Japan, when in fact it is brewed in the U.S. using domestic ingredients.

The National Law Review wrote on 3 March 2015 that the two plaintiffs claimed they had each been buying about one six-pack of Kirin every month while under the mistaken impression the beer was made in Japan.

They alleged Anheuser-Busch’s marketing and advertising misrepresented the beer’s origin and caused confusion among consumers. Although Kirin was initially made in Japan, it has been brewed in the U.S. since 1996.

The customers’ misunderstanding rose from the fact that, while the individual bottles clearly stated (although in fine print) that the beer was “Brewed under Kirin’s strict supervision by Anheuser-Busch, in Los Angeles, CA and Williamsburg, VA.”, the six pack case did not.

According to the plaintiffs, this disclosure was inadequate. The beer would need to be removed from the case and the label closely examined in order to read the fine print, which the plaintiffs argued a reasonable consumer would not do before purchasing the beer.

The plaintiffs claimed this packaging, marketing and advertising of Kirin was intentionally designed to deceived consumers into believing they were purchasing Japanese beer. They also claimed these practices deceived not only individual consumers, but also restaurants, bars, and retailers. Their lawsuit, filed in late 2013, alleged that Anheuser-Busch violated the Florida Deceptive and Unfair Trade Practices Act.

The class-wide settlement agreement allows consumers who purchased Kirin beers to recover up to USD 50 per household in reimbursement for items purchased under the mistaken belief they had been imported, provided they can supply proof of purchase.

Consumers without proof of purchase will be able to recover a maximum of only USD 12 total. The settlement agreement also includes a USD 1 million fee award for class counsel.

In addition to the monetary payments, Anheuser-Busch also agreed to display the current fine-print disclaimer: “Brewed under Kirin’s strict supervision by Anheuser-Busch in Los Angeles, CA and Williamsburg, VA” more prominently on Kirin beer bottles, to add it to all consumer-facing packages, and to refrain from describing Kirin beers as imported.