Beck’s beer drinkers feel misled and win refund
It would have been purely for economic reasons that AB-InBev transferred the production of Beck’s for the U.S. market from Bremen to St. Louis at the end of 2011. Allegedly, AB-InBev thus saved USD 9 million per annum in transportation costs alone.
But did they stop a second to reflect what this shift in production would mean to the image of Beck’s as an “import beer”?
If they did, they should not have been too surprised when one year later some loyal Beck’s drinkers filed a lawsuit, arguing that they were misled by AB-InBev over the origin of Beck’s.
On 25 June 2015 media reported that AB-InBev has agreed to settle the class action case and is offering refunds.
The suit, filed in a U.S. district court in Miami in 2013, alleged the brewing giant “committed unfair and deceptive practices” by marketing and selling beer “in a way that misleads consumers into believing that Beck’s Beer is German, still imported from Germany.”
In a preliminary settlement, which is set for a final approval hearing in October this year, AB-InBev is agreeing to provide refunds to any consumer who has purchased Beck’s in the U.S. since May 2011.
The catch is: the deal entitles Beck’s drinkers to a refund of up to USD 50. But that’s only if they kept their proof of purchase. Who does this? Those who haven’t been hoarding receipts will have their refunds capped at USD 12.
The lawyers who filed the suit have something to really toast about – they get USD 3.5 million for their endeavours, U.S. media say.
As part of the settlement, AB-InBev agrees to make the phrase “Brewed in USA” or “Product of the USA” more visible on each bottle.
This isn’t the first time AB-InBev has faced charges over deceptive labelling regarding one of its import brands. The brewer settled a similar claim in January this year regarding the Japanese brand Kirin, which is not imported but brewed by AB-InBev in Los Angeles and Williamsburg, Virginia.
Beer drinkers looking for a genuine import brand need to look no further than to the top selling imports. Corona, owned by Constellation Brands and the top-selling imported beer in the U.S., is brewed in Mexico. Heineken, the second best-selling import, is brewed in the Netherlands.
