Processing Magazine

MillerCoors faces legal battle in Ohio over cost-cutting measures

September 5, 2008

According to the Associated Press, MillerCoors LLC is facing a court fight in Ohio over its attempt to trim costs by cutting beer distributorships. Beverage Distributors Inc. of Cleveland and AFP Distributors Inc. of Glouster in southeast Ohio have asked U.S. District Court Judge Michael Watson in Columbus to block the brewer from breaking their franchise agreements. MillerCoors said in separate Aug. 19 letters that it was terminating the distributorships under an Ohio law allowing such an action when ownership changes hands. The distributors sued the brewer last week in response. The company is a newly formed joint venture between SABMiller''s U.S. unit and Denver-based Molson Coors Brewing Co.