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08 November 2013

Miami man sues Anheuser-Busch for “deceptive” Beck's beer labels

There are hobbies and hobbies. Some play golf, others sue. On 18 October 2013 U.S. media reported that a man from Miami has filed a class action lawsuit against AB-InBev, alleging that although Beck’s beer is brewed in the U.S., the company’s marketing practices deceive consumers into believing it’s imported from Germany. He has asked for USD 5 million in damages.

The complaint, filed by a Francisco Rene Marty, alleges that the company uses deceptive terms on the beer’s labels, including “Originated in Germany” and “Germany Quality,” so that it can be sold at a higher price than other domestic beers.

Beck's is brewed in several countries, including the United States. Previously, all Beck’s beer sold in the U.S. was shipped from Bremen. But in 2011 AB-InBev decided to shift production to St Louis as of January 2012, probably in an effort to reduce costs (and raise profits on the brand). That meant a loss of an estimated 600,000 hl in production volume at the Beck’s brewery in Bremen.

The lawsuit alleges that although the beer is still brewed with water, hops, barley and yeast, “the source and type of each of these ingredients [are] substantially different. For example, Beck’s Beer is brewed with water from Missouri, as opposed to the Rotenburger Rinne in Germany”, it was reported.

All this makes one wonder why the man does not switch to proper German imports if he is so unhappy with domestically produced Beck’s. However, his point is that through carefully choosing its words on the label, AB-InBev is trying to create the impression that Beck’s is still imported.

Mr Marty isn’t the only disappointed Beck’s customer. Last year Mr Rinfret set up a Facebook site “Import Beck’s from Germany”. If it’s a token of how many people are actually displeased with AB-InBev’s policy: the site sports 268 likes (25 October 2013).

AB-InBev may believe that the general humming noise of the internet will drone out sites like Mr Rinfret’s. However, suits represent a more serious matter because they can drag on. Mr Marty’s suit comes after several class actions earlier this year which all accused AB-InBev of lowering the alcohol content of Budweiser.

According to Bloomberg, the company insists that “all of these claims are specious, and it’s unclear whether any of these plaintiffs will prevail in court against the well-financed Belgium-based corporation. Regardless, their courtroom challenges don’t help when AB-InBev is trying to contend with the rising popularity of craft brewers in the U.S. Sure, some drinkers gripe that craft beers are excessively hoppy. But nobody’s suing them for it.”

Rightly put.

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