Aug. 31, 2009 (Canada NewsWire Group) --
WATERLOO, ON, Aug. 31 /CNW/ -- Brick Brewing Co. Limited (TSX: BRB) announced today it has received a Statement of Claim from Anheuser-Busch, Incorporated and Labatt Brewing Company Limited, claiming infringement of Bud Light Lime trademarks and copyrights. Labatt and Anheuser are seeking an injunction as well as damages or an accounting of profits from Brick's sales of Red Baron Lime. Anheuser-Busch, Incorporated and Labatt Brewing Company Limited are part of Anheuser-Busch InBev ("AB InBev"), the world's largest brewer.
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 earlier this month, intends to defend itself aggressively and believes this is a Canadian example of AmBev's anti-competitive tactics.
"Getting hit with this nuisance suit is not unexpected, as Brick believes it is a standard tactic used by large breweries worldwide to eradicate all competition regardless of a brewer's size," said George Croft, President and CEO of Brick Brewing. "But we're committed to take a stand on behalf of all craft brewers in Ontario and Canada. Significant differences exist between these brands - starting with a fair price that is nearly 25 percent less than Bud Light Lime and the fact Red Baron Lime beer is made in Ontario - above all, we believe consumers deserve to benefit from healthy competition."
Among claims made in this suit are that Brick's Red Baron Lime label uses images of limes and the colour green, and that the www.lustforlime.com website promoting Red Baron Lime, uses images of young people wearing swimsuits.
"Our decision to feature a lime on our label was motivated by the fact that Red Baron Lime is a lime-flavoured beer, and green is of course, the colour of limes," noted Croft. "We believe the fact that this premium beer is priced under $10 for a 6-pack and is readily available is the real crux of the matter, when they're asking consumers to pay import prices and have had trouble supplying enough product to retailers."
According to the suit filed in Canada's Federal Court, Anheuser-Busch is claiming infringement of Anheuser's Bud Light Lime beer trademarks, depreciation of the goodwill associated with the Bud Light Lime marks and that beer consumers are confused between Brick's Red Baron Lime beer and Anheuser's Bud Light Lime beer.
Croft says Brick was cautious and diligent in its brand development process, and is skeptical about alleged consumer confusion.