Coca-Cola Must Face Seagram’s Ginger Ale Class Action Lawsuit

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A federal judge says The Coca-Cola Company must continue to face allegations that Seagram’s Ginger Ale is falsely labeled as “made with real ginger.”

In an order issued last Wednesday, U.S. District Judge Edward J. Davila denied a motion for dismissal filed last March by defendant The Coca-Cola Company.

The judge determined that plaintiff Jackie Fitzhenry-Russell raised plausible claims under California’s Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act.

Contrary to Coca-Cola’s claim that the plaintiff admits the product contains real ginger, Judge Davila noted that Fitzhenry-Russell “alleges repeatedly that the Product is not made from real ginger, and therefore the statement ‘Made With Real Ginger’ is false or misleading.”

The judge also declined to narrow the scope of Fitzhenry-Russell’s proposed Class. Coca-Cola argued that the proposed Class would encompass sales outside of California to non-California consumers who don’t benefit from California’s consumer protection laws. Judge Davila said a motion for dismissal is not the suitable stage of litigation for a decision on that issue, which is more properly determined  after a motion for Class certification.

Fitzhenry-Russell filed this Seagram’s Ginger Ale class action lawsuit early this year in tandem with an almost identical claim against Dr. Pepper Snapple Group over the labeling on Canada Dry Ginger Ale.

Despite an indication on the label that says Seagram’s Ginger Ale is “made with real ginger,” Fitzhenry-Russell claims no reasonable consumer would recognize any of its ingredients as real ginger. The ingredients label lists carbonated water, high fructose corn syrup, citric acid, preservatives and “natural flavor,” she claims.

The “natural flavor” listed in the ingredients list is allegedly “a chemical flavoring compound that is manufactured to mimic the taste of ginger, but does not contain ginger as a reasonable consumer understands it to mean and contains none of the health benefits of real ginger root.”

According to this Seagram’s Ginger Ale class action lawsuit, the defendant uses “isolated compounds” derived from ginger plants. Since by themselves these compounds may not actually taste like ginger, Coca-Cola allegedly adds other extractions so that the final product mimics ginger flavor.

Fitzhenry-Russell says real ginger offers health benefits like aiding relaxation and soothing an upset stomach. She believes the representation that Seagram’s Ginger Ale is “made with real ginger” is a material representation that would make consumers be willing to pay a premium price for the product.

Based on that misconception, she says, she bought a few cases of Seagram’s Ginger Ale for her own use. She claims that were it not for the allegedly misleading labeling, she would not have bought the product or would have been willing to pay less for it.

The plaintiff is seeking to represent a plaintiff Class consisting of all persons who have purchased Seagram’s Ginger Ale since Dec. 23, 2012.

Fitzhenry-Russell is represented by attorneys Adam J. Gutride, Seth A. Safier, Marie A. McCrary, Matthew McCrary and Kristen Simplicio of Gutride Safier LLP.

The Seagram’s Ginger Ale Mislabeling Class Action Lawsuit is Fitzhenry-Russell v. The CocaCola Co., Case No. 5:17-cv-00603, in the U.S. District Court for the Northern District of California.

UPDATE: On May 9, 2019, The Coca-Cola Co. has agreed to pay $2.5 million to resolve class action claims that Seagram’s ginger ale labels are misleading.

UPDATE 2: July 2019, the Seagram’s Ginger Ale class action settlement is now open. Click here to file a claim.