CA small brewers drawn into class action suit

Modern Brewery Age,  Nov 6, 2000  

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Anheuser-Busch attorneys have hit several California small brewers with subpoenas, demanding detailed financial information. The first of the brewers to be served was Lagunitas Brewing Co. of Petaluma, CA. It is reported that Sierra Nevada Brewing Co. and Gordon Biersch have also been hit with subpoenas.

The information is being sought for use in a class action lawsuit that was filed against Anheuser-Busch in 1997 by four California small brewers-Anderson Valley Brewing Co., El Toro Brewing Co., St. Stan's Brewing Co. and Lake Tahoe Brewing Co. The suit alleged that Anheuser Busch's 100% share-of-mind program forced independent wholesalers to stop distributing microbrewery brands. The three-year-old case is slated to go to trial next year, but may be postponed even longer. Last year, the presiding judge tossed out two of the three legal arguments offered by the plaintiff breweries. He postponed a ruling on the third argument, requesting both sides to submit new information. Until then, new plaintiffs cannot join the action.

Ken Allen, founder of the plaintiff Anderson Valley Brewing Co., tried to drop out of the suit last year after A-B demanded that he turn over sensitive financial data. But A-B would not relent on seeing his records, so Allen designed to continue to press the case. "I hope I don't lose my head over it," Allen said. "David and Goliath are no comparison. They are so much bigger than Goliath, and I am so much smaller than David. It's like the ant and the elephant. They are one of the greatest companies in the world, but damn, they're bullies."

Tony Magee, owner of Lagunitas Brewing Co., was not a party to the suit, but has been dragged into the fight as a reluctant witness for Anheuser-Busch. According to Magee, Anheuser is trying to use Lagunitas as an example of a micro that has been doing well, despite the 100% share-of-mind dictate. Lagunitas was taken on by San Francisco A-B house Matagrano, Inc. in 1998, after that distributor had dropped several other micros. With increased distribution in the Bay Area, Lagunitas has boosted barrelage from 900 barrels in 1995 to a projected 17,000 barrels this year. "They want to use us as a poster boy," Magee says. "They think we make their case for them, and they are asking me to give testimony against brother brewers."

However, Magee has refused to turn over any information. "If they want this information, I told them that they're going to have to pry it from my cold, dead hands," he said.

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