Wal-Mart Accused Of Selling 'Fake Craft Beer'

Wal-Mart Stores Inc WMT has been hit with a lawsuit, alleging the company of selling “fake craft beers” in order to trick customers into paying more.

Trouble Brewing: Figuratively, And Literally

The retail giant jumped on the craft beer craze after introducing its own line of craft beers in early 2016, according to the Washington Post. Wal-Mart stated it was working in “collaboration’ with Trouble Brewing to create four styles of craft beer available in more than 3,000 stores. The problem is, there is no Trouble Brewing company.

Wal-Mart’s “craft beer” is actually made by WX Brands, and the address listed is for Genesee Brewing, which is based in Costa Rica and produces anything but craft beer.

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The lawsuit alleges that the four Trouble Brewing craft beers give no evidence Wal-Mart has anything to do with them and doesn't meet any of the standards for craft beers listed by the Brewers Association.

What Is Considered Craft Beer?

The distinction of what constitutes a craft beer has been heavily contested, as the industry has experienced rapid growth in recent years. In 2014, Molson Coors Brewing Co TAP owned Miller-Coors was sued for deceptive advertising for the portrayal of its Blue Moon brand as craft beer, despite being produced by a macro beer company. The case has been dismissed repeatedly.

While a majority of the defense of the case may rest on the fact that there is no standard definition of craft beer, the Brewers Association of Boulder, Colorado, define a craft brewery as “one that produces fewer than 6 million barrels of beer annually, is less than 25 percent owned or controlled by a non-craft brewer and makes beer using only traditional or innovative brewing ingredients.”

Is Anything Wal-Mart Sells Craft?

This poses a problem for Wal-Mart. With such expansive distribution, it is a stretch that the company can claim anything they sell could be constituted as a craft brand.

According to USA Today, an attorney believes that WX Brands/Genesee Brewing makes 6 million of barrels of beer for Wal-Mart’s Trouble Brewing alone.

Posted In: NewsLegalBlue MoonBrewers AssociationGenesee BrewingTrouble Brewingcraft beerWashington PostWX Brands
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