Distribution - Alcohol Beverages & Products

Our Alcohol Beverages and Products Group has extensive experience representing supplier-tier industry members in all aspects of alcohol beverage distribution. Our lawyers have prepared and negotiated many distribution contracts, broker contracts and similar documents. Our Firm routinely counsels clients on establishing and managing distribution networks, as well as e-commerce activities. In addition, our lawyers work with the Firm’s Distribution Practices & Strategies Group to assist clients in assessing the legal and monetary effects that mergers, acquisitions and other reorganizations may have on their distribution networks.

Should a dispute arise, we have litigators in our Boston, Chicago, Los Angeles, New York and Washington, D.C., offices with experience handling alcohol distributor and broker terminations in states with and without alcohol beverage franchise laws. Counting only disputes that progress far enough to result in (at least) the filing of a complaint, arbitration demand or administrative notice, we have handled alcohol distribution litigation in Alaska, California, Connecticut, Delaware, Georgia, Illinois, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Hampshire, New York, Ohio, Oregon, Pennsylvania, Texas and Wisconsin. We are highly familiar with litigating issues of cause, rights to new products and brand extensions, obligations of successor brand owners, disapproval of proposed changes of wholesaler ownership, and other recurring distribution issues.

Representative Distribution Experience in the Alcohol Area

Counsel a large beer importer on all distribution and regulatory aspects of a major restructuring driven by the addition of significant volume to its U.S. business, and integrate hundreds of beer wholesalers in the importer’s distribution network, all without the cooperation of the prior importer.
Successfully defend a brewer in a wrongful termination action brought by a wholesaler in state court by defeating the wholesaler's request for injunctive relief under the state beer "franchise" and common law claims.
Assist one of the world’s largest drinks companies in restructuring its entire U.S. wine and distilled spirits distribution system, achieving significant consolidation objectives and economies of scale, and the restructuring set a new standard for wine and spirits distribution in the United States.
Defend a wine importer and its foreign supplier in a wholesaler’s state franchise law action, securing the wholesaler’s voluntary dismissal of the lawsuit based on the strength of our clients’ potential counterclaims.
Enjoin a state administrative agency from enforcing a mandatory ship order against a large winery that had decided not to sell a new product line to two existing in-state wholesalers, and obtain dismissal of the administrative proceeding on summary judgment.
Successfully secure the Rule 12(b)(6) dismissal of a federal court action against a large distilled spirits importer brought by a terminated wholesaler dissatisfied by the importer’s failure to halt termination before the state regulatory agency.
Successfully defend a wine supplier against a distributor’s damages claim of $200 million arising out of the distributor’s assertion that its exclusive distribution rights in Canada were wrongfully terminated.
Counsel numerous clients on the regulatory and distribution effects of the U.S. Supreme Court’s decision in Granholm v. Heald and the ongoing Costco v. Hoen litigation. McDermott offers ongoing advice regarding changes in state law in the wake of these litigations.
Represent a large wine supplier in a state administrative proceeding arising from the winery’s decision not to sell a newly-acquired brand to the brand's previous wholesaler, reaching a favorable settlement allowing termination without any payment to the wholesaler.

Contacts

Marc E. Sorini
+1 202 756 8284
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Alcohol Beverages & Products Client Services

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