Ballast Point Owners Kings & Convicts to Exit Former Saint Archer Facility & Taproom
San Diego-headquartered Kings & Convicts Brewing, which acquired Ballast Point from Constellation Brands in late 2019, will vacate the Encinitas taproom and Miramar production facility it took over from Molson Coors in January 2022.
Both locations previously belonged to the Saint Archer brand, which Molson Coors acquired in 2015 and ceased production of last year.
Kings & Convicts’ lease on the 50,000 sq. ft. brewery is “nearing [its] expiration” and the company is “evaluating its options for exiting the location.” At the time of the transfer from Saint Archer to Kings & Convicts, the brewery contained a 40-barrel brewhouse, 5-barrel pilot system, cellar and canning line. Last year, Kings & Convicts said it planned to retain the Saint Archer staff, but employees’ futures are uncertain as of press time.
The moves come as Kings & Convicts plans to shift its focus to its “core strengths: its distribution network and network of existing Ballast Point taprooms,” the company said in a press release.
Ballast Point’s brewery, also in Miramar, will continue to produce Kings & Convicts’ portfolio, which is now available in 250 retail accounts throughout San Diego and “a growing footprint,” according to the release.
Elsewhere in California, the company opened Ballast Point’s newest taproom and restaurant in San Francisco’s Mission Bay District. The location marks Ballast Point’s first in Northern California and sixth California taproom overall. It features a 3-barrel pilot brewhouse and 46 draft lines, according to a press release.
Mass. Judge Rules Use of Franchise Law was Unconstitutional in Jack’s Abby’s Termination of Atlantic
A Massachusetts judge has ruled the application of 25E 1/2 – the state’s reformed franchise law – “unconstitutional” in the legal battle between Jack’s Abby Craft Lagers and its former distributor Atlantic Importing Company.
Framingham, Massachusetts-based Jack’s Abby terminated Atlantic days after then-Gov. Charlie Baker signed franchise reform into law in January 2021. Atlantic disputed the termination with a petition to the Massachusetts Alcoholic Beverages Control Commission.
The distributor contended that 25E 1/2 was unconstitutional because it required disputing parties to enter arbitration to determine fair market value, rather than a jury. In a 26-page ruling issued on January 25, Massachusetts superior court justice Peter B. Krupp agreed.
“As applied in this case, Section 25E 1/2 is unconstitutional because it violates [Article] 15 of the Massachusetts Declaration of Rights,” he wrote. “The factual issues which Section 25E 1/2 sends to arbitration, including the fair market value of the wholelsaer’s distribution rights, involve a property dispute between two persons and legal remedies akin to contract damages, which trigger a right to a jury trial.”
Krupp admitted that 25E1/2 does not always violate Article 15, particularly in situations in which both parties agree to arbitration, which was not the case for Atlantic and Jack’s Abby.
In his ruling, Krupp denied Jack’s Abby’s motion to dismiss Atlantic’s complaints and vacated the award determined in arbitration for fair market value of the brewery’s brands. The Superior Court will have a status conference on February 23 “about how the court should determine what further relief should be granted.”
Miles Teller Increases Investment in Finnish Long Drink
Actor Miles Teller, who is featured along with his wife in this year’s Bud Light Super Bowl ad, has increased his stake in gin-based, ready-to-drink canned cocktail the Finnish Long Drink.
“Now that we are available in over 34,000 locations and most major chains, I wanted to lead an investment that will further our growth, help us advertise nationally, and get the word out about The Finnish Long Drink – the best canned beverage in the game,” Teller said in a press release.
The Finnish Long Drink is distributed in 43 U.S. markets.
In mid-2021, the Finnish Long Drink closed on a $25 million investment round that included Teller, DJ Kygo, pro golfers Rickie Fowler Justin Thomas and Kramer Hickcock, tennis players Elliot Tebele and Reilly Opelka, NFL players Dalvin Cook and Braxton Berrios, film director Peter Farrelly, and Founders Brewing Co. co-founder Mike Stevens.
Boston Beer Company, which launched a malt-based, Long Drink-inspired brand Bevy in 2021, discontinued the brand last year.
TTB Accepts $25K Offer in Compromise From Iowa Wholesaler
The Alcohol and Tobacco Tax and Trade Bureau (TTB) has accepted a $25,000 offer in compromise from Elkader, Iowa-based Abu Nawas Beverage Company for allegedly operating without a Federal Alcohol Administration (FAA) Act basic permit for a decade.
The TTB alleged that Abu Nawas Beverage Company operated from September 2011 through August 23, 2021, without the permit. The wholesaler has agreed to pay the settlement in three installments: $5,000 by December 31, 2022; $10,000 by December 31, 2023; $10,000 by December 31, 2024.
Abu Nawas Beverage’s website lists a portfolio of beer and wine brands that includes Jester King Brewery, Grimm Artisanal Ales, Prairie Artisan Ales, and Une Annee, among others.