Missouri’s Major Receives “Substantial Payment” In Settlement With Diageo, Glazer’sSeptember 24, 2014
Major Brands yesterday announced a settlement with Diageo and Glazer’s roughly a week into a civil trial involving Missouri’s two leading spirits and wine distributors and the top U.S. spirits supplier. Terms weren’t disclosed, but Major said in a statement that the settlement provides a “substantial payment made to Major Brands.”
In June 2013, St. Louis Circuit Judge Robert Dierker ruled that Diageo had violated Missouri’s franchise laws when it pulled its brands from Major and shifted them to Glazer’s. While Dierker allowed the transfer, he ruled that Major could seek damages for its lost revenues. Diageo’s move to Glazer’s resulted in nearly $200 million in lost business, according to Major’s attorney, Richard Walsh.
Like Major, both Diageo and Glazer’s released statements saying that they were glad to resolve the dispute. Diageo added that Major continues to distribute its beer and RTD portfolio, and that it “looks forward to growing that business in Missouri with Major Brands.”
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