A Rye beer exporter who claims to have established an international market for Anheuser-Busch craft beers has sued the brewer for $75 million for allegedly sabotaging their arrangement.
CraftCanTravel accused Anheuser-Bush and affiliates of interfering with a contract in a complaint filed on April 3 in U.S. District Court, White Plains.
“With the backing of the economic muscle that only a corporate behemoth … can flex,” the complaint states, an Anheuser-Busch affiliate has choked off the supply of beer and dismantled the business CraftCanTravel created to replace it with its own export business.
Anheuser-Busch spokesperson Kaitlin Craig said “we believe this lawsuit is without merit and will vigorously defend against it.”
Maartin Kruijtzer, of Rye, formed CraftCanTravel in 2012. Before then, according to the complaint, Craft Brew Alliance, in which Anheuser-Busch then held a minority interest, did little exporting.
Craft beers are often unpasteurized and have a short shelf life, the complaint states. The supply chain has to be tightly managed so that the beer can be consumed within six months, versus a year for mass-produced beers.
Kruijtzer, who had worked for Heineken for 22 years, says his company “was born to exploit this previously untapped market.”
He struck a deal with Craft Brew Alliance to export its beers. Eventually, CraftCanTravel became the exclusive international distributor of five brands: Kona, Redhook, Widmer Brothers, Omission and Square Mile Cider.
CraftCanTravel claims it singlehandedly created an international export market for the beers. Kona, for instance, is consumed in more that 50 countries and has gained the top market position in Japan, Korea, Switzerland and other countries.
In 2017, Craft Brew Alliance began discussing taking control of international distribution by cutting out the middleman, the complaint states. An executive allegedly threatened that if CraftCanTravel did not cooperate with a proposed sale, Craft Brew Alliance could stop supplying the products.
In 2020 Anheuser-Busch bought out the majority interest in Craft Brew Alliance for $220 million. An employee who helped solve logistical problems was fired, according to the complaint, and Craft Brew Alliance became a “rudderless ship absent a captain.”
Backlogs developed, deliveries were missed and customers were dissatisfied, the complaint states.
In 2022, Anheuser-Busch allegedly failed to honor a commitment to supply hundreds of thousands of cases of beer, “causing devastating losses.”
Craft Brew Alliance allegedly refused to discuss projected sales for 2023, as required by the distribution agreement. CraftCanTravel began negotiating a buyout, and last June, according to the complaint, Craft Brew Alliance agreed to pay $16 million for the international distribution rights.
But Anheuser-Busch “did an about-face,” contending that it could not consummate the deal.
The brewer sold eight beer and beverage brands, including three brands exported by CraftCanTravel, to Tilray Brands Inc. of Canada, for $80 million.
No mention was made of CraftCanTravel’s distribution rights, according to the complaint, and the exporter was cut out of annual planning for 2024.
“In other words,” the complaint states, Anheuser-Busch “is engaged in a scheme to steal (CraftCanTravel’s) international distribution rights for nothing.”
Craft Brew Alliance “has complied with all terms of its contract,” the Anheuser-Busch spokesperson said, “and always adheres to the highest standards of business integrity with its partners.”
CraftCanTravel’s lawyers at Denlea & Carton, White Plains, charged Anheuser-Busch and Tilray with interference with a contract and interference with a prospective business advantage.
They are asking the court to stop Tilray from distributing the Redhook, Widmer Brothers and Square Mile Cider products; Â prohibit Anheuser-Busch from selling the distribution rights for the Kona and Omission brands; and pay at least $75 million in damages.
