Details form the complaint:
CLASS ACTION COMPLAINT FOR DAMAGES, RESTITUTION, AND INJUNCTIVE RELIEF:
(1) VIOLATIONS OF THE CONSUMER LEGAL REMEDIES ACT (CAL. CIV. CODE § 1750 et seq.);
(2) DECEPTIVE AND MISLEADING ADVERTISING (CAL. BUS. & PROF. CODE § 17500 et seq.); and
(3) UNFAIR COMPETITION (CAL. BUS. & PROF. CODE § 17200 et seq.) DEMAND FOR JURY TRIAL
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FACTUAL ALLEGATIONS
12. Over the past 25 years, craft brewing in the United States has seen tremendous growth, with the number of craft breweries increasing from approximately 250 in 1989 to more than 3,400 in 2014. With nearly 400 craft breweries, California is home to more craft breweries than any other state. The economic impact of craft brewing in California is estimated to exceed $4.5 billion.
13. Beer consumers, including Plaintiff, are willing to pay, and do pay, a premium for high quality, small batch, craft beers. On average, a six pack of craft beer typically costs $2.00 to $3.00 more than a six pack ofmacrobrewed, or mass produced beer. 3 CLASS ACTION COMPLAINT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
14. The Brewers Association, an organization dedicated to promoting and protecting American craft brewers, defines craft breweries as "small, independent and traditional." To qualify as an American craft brewer, a brewery must:
15. (a) (b) (c) Produce less than 6 million barrels of beer annually; Be less than 25 percent owned or controlled by a non-craft brewer; and Make beer using only traditional or innovative brewing ingredients. With eight major breweries located in California, Colorado, Georgia, North Carolina, Ohio, Texas, Virginia, and Wisconsin, Defendant produces more than 76 million barrels, or 2.4 billion gallons, of beer on an annual basis. Based on the volume of beer it produces, as well as the ownership interests of its parent companies, Defendant clearly does not qualify as a craft brewer.
16. Defendant began producing Blue Moon beer in 1995 to compete in the burgeoning craft beer market. While Defendant was operating as Coors Brewing Company at the time, it sold Blue Moon beer under the name, Blue Moon Brewing Company.
17. Blue Moon Brewing Company is a small, limited capacity brewery located inside Coors Field, home to the Colorado Rockies baseball team. The Blue Moon beer that is sold in stores is not brewed at or by the Blue Moon Brewing Company. Rather, it is brewed by MillerCoors at the company's Golden, Colorado and Eden, North Carolina breweries. In addition to brewing Blue Moon, these breweries produce all of Defendant's other beers, including Coors, Milwaukee's Best, Miller High Life, Hamm's, Icehouse and Olde English.
18. Despite brewing Blue Moon for the past 20 years, Defendant goes to great lengths to disassociate Blue Moon beer from the MillerCoors name. MillerCoors does not appear anywhere on the Blue Moon bottle. Moreover, while Blue Moon is prominently displayed on the MillerCoors web site, there is not a single reference to MillerCoors on the Blue Moon Brewing Company web site. In this regard, Defendant gains the benefit of having a top selling beer included among its brands, while at the same time avoiding the loss of sales that would undoubtedly come with having Blue Moon branded as a macrobrew and/or a MillerCoors beer.
19. In addition to fraudulently claiming that Blue Moon is brewed by Blue Moon 4 CLASS ACTION COMPLAINT I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Brewing Company and intentionally omitting the MillerCoors name from Blue Moon products and advertising, Defendant also uses the registered trademark "Artfully Crafted" to falsely portray Blue Moon as a craft beer. This phrase, which appears on Defendant's web site and in print advertising, further serves to further mislead consumers by implying that Blue Moon is a true craft beer brewed by an almost entirely fictitious brewery.
20. Through its false and deceptive marketing, Defendant misleads consumers to believe that Blue Moon is an independently brewed, hand-crafted beer. While MillerCoors clearly does not constitute a craft brewer, and thus Blue Moon does not constitute a craft beer, Defendant falsely identifies it as such on the MillerCoors web site. This practice misleads consumers and allows Defendant to charge up to 50% more for Blue Moon beer than it charges for other MillerCoors products.
21. From 2011 until mid-2012, Plaintiff frequently purchased Blue Moon beer from San Diego-area retailers for personal and family consumption. Relying on its advertising, its placement among other craft beers, and the premium price it commanded, Plaintiff, who is also a beer aficionado and home brewer, purchased Blue Moon believing it was a craft beer, as the term is commonly used by beer consumers and the Brewers Association.
22. In or around July 2012, Plaintiff was informed by friends that Blue Moon is not a craft beer, but rather a mass produced beer made by MillerCoors. Plaintiff was initially skeptical, but eventually verified the facts through his own research. As a result, Plaintiff has not purchased Blue Moon since approximately July 2012.
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