Breakthru Files Missouri Franchise Suit Against Atomic Brands

Breakthru Beverage Group of Missouri has filed a lawsuit against Atomic Brands in the Circuit Court, Twenty-Second Judicial District, in St. Louis City, Missouri. Breakthru is aiming to assert its franchise rights to the Atomic portfolio, after the latter’s move to terminate Breakthru as its Missouri distributor.

Atomic Brands’ Monaco label has been among the fastest-growing spirits-based RTDs in the U.S. over the past half-decade, rising from 1.1 million cases in 2019 to 3.1 million cases last year, according to Impact Databank. Breakthru asserts that it played a key role in that growth in the Missouri market, which has become one of Atomic’s largest in the U.S.

Atomic is leaning on federal court decisions such as the ruling in Major Brands, Inc. v. Mast-Jägermeister US, Inc. in justifying Breakthru’s termination. Breakthru, however, says that decision and others “misinterpret Missouri franchise law and do not align with the precedents set by the Missouri Supreme Court.” The distributor wants the Missouri state court to reaffirm previous Missouri Supreme Court rulings on the franchise law, which requires good cause for distributor terminations.—Daniel Marsteller

Tagged : Atomic Brands, Breakthru

GET YOUR FIRST LOOK AT 2025 ESTIMATES AND 2030 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2025 IMPACT DATABANK REPORTS. CLICK HERE.