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Anheuser-Busch has settled a lawsuit filed by Oregon craft beer producer Suzie’s Brewery, that alleged the company falsely advertised itself as producing the only and first organic hard seltzer.
Portland U.S. District Judge Michael H. Simon signed off on an agreement on Tuesday dismissing the lawsuit, and warned Anheuser-Busch that “truth matters,” reports Law360.
“Truth matters. Whether the context is politics, science or commercial advertising, dishonesty has consequences,” Simon wrote.
The settlement comes after Suzie’s sued Anheuser-Busch in February over television ads for Michelob Ultra Hard Seltzer, reports Law360. The ads claimed that Michelob Ultra Hard Seltzer was “the only” or “the first” hard seltzer certified by the U.S. Department of Agriculture as organic, when in fact Suzie’s hard seltzer had been earlier certified.
After the lawsuit was filed, Simon issued a temporary restraining order stopping the “false and deceptive” ads from being shown by the American brewing company, famous for its Budweiser, Stella Artois and Michelob Ultra brands.
In the lawsuit, Suzie’s said that Anheuser-Busch unfairly squeezed out its smaller competitors in the organic hard seltzer market, reports Law360.
“Using the bully pulpit its massive national advertising budget allows, Anheuser-Busch has premiered a new false and misleading advertising campaign aimed at convincing health-conscious drinkers that its new organic hard seltzer is a unique, one-of-a-kind product. To be clear, it is not.”
In defense, Anheuser-Busch said that the advertising was in relation to Michelob Ultra Hard Seltzer being the first national USDA-certified organic hard seltzer that was being distributed nationally. However, Simon said that the company’s claims were “literally false on their face.”
The terms of the settlement are not immediately available.
This isn’t the first time Anheuser-Busch has faced legal action over the advertising of its alcoholic beverages. In September, 2020, Florida residents filed a class action lawsuit accusing the company of false advertising after they discovered its Rita products do not contain tequila.
Do you drink Anheuser-Busch’s Budweiser, Stella Artois, or Michelob Ultra brands? Let us know in the comments section!
Suzie’s Brewery is represented by Daniel C. Peterson, Amber Beyer, and Julie Annette Smith of Cosgrave Vergeer Kester LLP.
Anheuser-Busch is represented by Adam Simon, James F. Bennett, and Megan S. Heinsz of Dowd Bennett LLP and Shannon L. Armstrong of Holland & Knight LLP.
The Michelob Ultra Hard Seltzer Lawsuit is Suzie’s Brewery Co. v. Anheuser-Busch Cos. LLC et al., Case No. 3:21-cv-00178, in the U.S. District Court of Oregon.
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