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Back Off
Foreign-owned Brewers Anheuser-Busch / Labatt Retreat from Original Statement of Claim as Brick Brewing Stands Firm against Bullying Tactics
Revised Statement of Claim removes claim for depreciation of goodwill of the alleged trademarks, changes claim of punitive damages and narrows the claim in alleged passing off.
WATERLOO - Brick Brewing Co. Limited announced it has received an Amended Statement of Claim from brewing giant Anheuser-Busch, Incorporated ("AB") and related Canadian company, Labatt Brewing Company ("Labatt") in response to Brick's Motion to Strike portions of the claim. Most significantly, the revised claim removes AB's and Labatt's claims and assertions that Brick has depreciated goodwill in AB's and Labatt's alleged trade-marks, and also alters the claim of punitive damages. Brick Brewing continues to wage an aggressive information campaign to fend off the suit. Brick will file a Statement of Defence with Canada's Federal Court by September 30th.
"Bullies often change their tactics when the little guys fight back," said George Croft, President and CEO of Brick Brewing. "Such a drastic change in their suit calls into question the legitimacy of the claim and the carelessness taken when originally drafted and we believe this is a common pattern of conduct used in bull-dozing all competition regardless of the specific merits of the brand in question."
Brazil's antitrust regulator recently imposed a record fine of US$176 million on AB InBev's Brazilian subsidiary, AmBev for anti-competitive practices against small competitors. Brick Brewing, which launched its Red Baron Lime beer in August, intends to continue to defend itself aggressively against what Brick believes are AB's and Labatt's anti-competitive tactics.
"Dropping the claim of depreciation of goodwill is a major concession," says Croft. "Media pundits, brand experts and Ontario beer drinkers have all noted that Brick Brewing is one of several entrants into the lime beer category and recognize Canadians deserve more choice at an affordable price. They've obviously realized they have to back away from the implied assertion they alone created the lime beer category."
The Red Baron brand has been part of the Brick Brewing family for more than 20 years, and it was a natural line extension to offer a lime version. Other regional craft brewers in Canada also offered lime beer this summer with labels featuring limes and using the colour green throughout in packaging and marketing.
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