Sycamore Brewing Accuses Stone of Trademark Infringement
Two weeks after a jury sided with Stone Brewing in its trial against Molson Coors, the Escondido, California-headquartered craft brewer is tangled in another trademark infringement lawsuit – this time as the defendant.
Earlier this week, Charlotte, North Carolina-based Sycamore Brewing filed a complaint in the U.S. District Court for the Western District of North Carolina alleging Stone infringed on its trademark when it added “Keep It Juicy” to its Stone Hazy IPA packaging and marketing materials.
The U.S. Patent and Trademark Office (USPTO) registered Sycamore’s “Keep It Juicy” tagline in the beer class on August 24, 2021. Sycamore first used the tagline on packaging for its Juiciness IPA in September 2020. Stone Hazy IPA launched the week of August 15, 2021.
In its complaint, Sycamore pointed out the contradiction between Stone having filed more than 100 trademark defenses since 2018 against smaller outfits’ marks – including Broker Brewing Company’s Stonypoint, Reuben’s Brews’ Stone the Crows, and Helix Brewing’s Stoner Moment – yet still “ripped off Sycamore’s trademark.”
“As Stone grew larger and larger, it lost its way,” Sycamore wrote. “While it used to preach the gospel of ‘community’ in craft beer, it now seeks to damage smaller breweries by filing questionable trademark actions against them and to steal the trademarks of those smaller breweries it believes will not fight back.
“Sycamore is fighting back,” the brewer continued. “Stone stole Sycamore’s registered Keep It Juicy trademark. Unlike the dubious trademark disputes Stone initiates, this case is based upon an actual trademark inarguably owned by Sycamore that Stone is using for the exact same purpose in the exact same markets. So, Sycamore will fight to maintain ownership of its trademark and brand.”
Sycamore is accusing Stone of trademark infringement, unfair competition and deceptive trade practices. The brewery is seeking a jury trial; treblem, compensatory, consequential, statutory and punitive damages as determined during the trial; interest, cost and attorneys’ fees; and “all other relief.”
Two weeks ago, a San Diego jury awarded Stone $56 million in its trademark infringement trial against Molson Coors, which revamped the branding of its economy offering Keystone Light to emphasize the “Stone” part of the beer’s name. This week, Stone filed a post-trial motion seeking an injunction to prevent Molson Coors from “ongoing infringement of the Stone trademark.”
In a statement to Brewbound, Stone general counsel Josh Weiss said Sycamore’s filing of the complaint “was the first we had heard of this issue.”
“We disagree with the allegations but will investigate the matter and take action if appropriate and in keeping with our consistent policy of respect for brand rights,” he said.
As of Friday morning, Stone removed “Keep It Juicy” from Hazy IPA’s page on its website, trademark attorney Mike Kanach noted on Twitter.
So it looks like Stone already updated their product description on the website to remove the phrase KEEP IT JUICY #Trademarks #CraftBeer https://t.co/9FGdsujOOF pic.twitter.com/tRy3UgXPf2
— Mike Kanach (@mkanach) April 8, 2022
Stone is the country’s ninth largest craft brewer by volume, according to the Brewers Association (BA). It did not publish its 2020 volume in the BA’s New Brewer May/June 2021 issue, but produced 395,000 barrels of beer in 2019. In 2021, Sycamore produced about 28,000 barrels of beer, a +40% increase over 2020.
Laurelwood Brewing Acquires Assets from Ninkasi Brewing
The deal took effect in February, but Ninaksi has agreed to keep brewing Laurelwood’s packaged beers for distribution through April, according to the Oregonian. Laurelwood will then begin contract brewing with Clackamas, Oregon-based Barrett Beverage.
Founded in 2001, Laurelwood sold all of its assets – with the exception of its Portland brewpub – to Ninkasi’s then-parent company Legacy Breweries in 2019. The move followed the closure of several closures of Laurelwood’s brewpubs, ushering in a renewed focus on distribution.
Ninkasi sold a majority stake to Legacy a few months before the acquisition of Laurelwood, joining what was then a new upstart venture meant to acquire craft brands, similar to CANarchy (Oskar Blues Brewery, Cigar City Brewing, Deep Ellum Brewing, and more) and Artisanal Brewing Ventures (Victory Brewing, Southern Tier Brewing, Sixpoint Brewing and Bold Rock Hard Cider).
In 2021, Ninkasi bought back its majority stake in the business to “allow Ninkasi to continue to invest in its brand, people and position” in the Northwest, Ninkasi CEO Nigel Francisco said at the time.
Ninkasi co-owner Nikos Ridge told the Oregonian the latest split with Laurelwood was “amicable.” Both Ridge and Laurelwood director of sales Andy Schaefer told the Oregonian the deal will allow Laurelwood to diversify its distribution lineup, which was limited to four offerings in the Ninkasi partnership.
House Passes $42 Billion Restaurant Revitalization Fund Replenishment Bill
The U.S. House of Representatives voted 223-203 Thursday in favor of the Restaurant Revitalization Fund (RRF) Replenishment Act (H.R.3807), approving an additional $42 billion in funding for bars and restaurants in response to the COVID-19 pandemic.
The bill, co-sponsored by Rep. Earl Blumenauer (D-OR), was created to aid the more than 177,000 food and beverage establishments – including breweries – that applied for funding from the initial $44 billion RRF fund, but received nothing.
Blumenauer initially asked for $60 billion to replenish the fund. The passed legislation also allocates an additional $13 billion for other impacted businesses, but will need to be approved by the U.S. Senate before President Joe Biden can sign it into law. A version of the bill introduced in the Senate (S.2091) was introduced in June 2021 and has 42 co-sponsors.
During a press conference yesterday, Independent Restaurant Coalition executive director Erika Polmar said she is “belligerently optimistic the Senate will do the right thing.”
Modern Times Confirms California Bank & Trust Pursuing Receivership Litigation
The previously reported litigation filed against Modern Times Beer was initiated by California Bank & Trust, Dan Reed, marketing director for the San Diego-based brewery, confirmed to Brewbound.
Modern Times announced Wednesday that pending litigation would likely “result in a court-ordered receivership sale” of the brewery. Through that process, California Bank & Trust would nominate a receiver – later appointed by the court – who would oversee the sale of Modern Times, and oversee its financial decisions for the “immediate future.”
The news followed Modern Times’ February announcement that it would be closing four of its locations and laying off 73 of its 266 employees. Reed said no more staff changes or taproom closures are expected in the short-term.
Asked how this news impacts loans the company has from individuals, Reed said: “We cannot speculate on any conclusions for any individuals at this point. This change with the receivership helps Modern Times continue to operate the brand and look for new ownership. More will not be known until we continue on this process.”
Tilray’s Bev-Alc Revenue +64% in Q3; SweetWater Adds Arizona
Global cannabis firm Tilray – the Canadian parent company of U.S.-based craft breweries SweetWater, Green Flash and Alpine – reported a +23% increase in net revenue, to $152 million, for the third quarter of its 2022 fiscal year.
Beverage-alcohol revenue from the aforementioned beer brands and Breckenridge Distilling increased +64%, to $19.6 million.
“This was primarily due to our acquisition of Breckenridge in December, while SweetWater also contributed an incremental $2 million due to increased distribution points, primarily associated with products shipped from Fort Collins,” CFO Carl Merton said during a conference call with investors.
The company derived 13% of its revenue from alcohol during Q3 2022, up from 10% during the same quarter of 2021.
Atlanta-based SweetWater has nearly doubled its distribution footprint since Tilray acquired it in late 2020. This week, the brewery announced it had entered Arizona, its 42nd state, with statewide representation from the Hensley Beverage Company.
Hard MTN Dew Sales Reach Nearly $5M in First Month
A month after launch, Hard MTN Dew – the partnership project between PepsiCo and Boston Beer Company – has had nearly $4.7 million in off-premise dollar sales in total multi-outlet plus convenience, according to the market research firm IRI.
More than $1 million of those dollar sales accrued in the latest week, ending March 27, when the brand family claimed a 0.13 share of the beer category in observed channels. So far, Hard MTN Dew is distributed in just three states: Florida, Iowa and Tennessee.
The brand’s variety 12-pack alone – which includes the flavors MTN Dew, Baja Blast, Black Cherry, and Watermelon – accounted for 0.11 share of the category, with $876,421 in off-premise sales in the latest week.
Boston Beer president and CEO Dave Burwick said during the company’s Q4 earnings call that the brand plans to expand into 13 more states by May. Those states have yet to be announced.
The 5% ABV flavored malt beverage (FMB) launched in February, and contains no caffeine or added sugar (unlike its soda namesake). Through the partnership, Boston Beer developed and produced the FMB, while PepsiCo will sell, deliver and marchandise it through its new wholesale entity, Blue Cloud Distribution. Boston Beer has said it will handle on-premise sales.
Brooklyn Brewery Unveils Brand Refresh
Brooklyn Brewery has launched a design refresh, in partnership with the Leeds, UK-based branding agency Robot Food. The changes are subtle and have “not changed the feel” of the brewery’s branding – originally created by famed graphic designer Milton Glaser, designer of the iconic I Love New York logo – “just the legibility and impact,” Robot Food founder Simon Forster said in a press release.
Explore the refresh project here: https://www.robot-food.com/work/brooklyn-brewery/