Monday, July 22, 2019

Heineken fined $1.25 million for NY state liquor law violations

Heineken beer bottles. (AP photo).

Global brewing giant Heineken USA will pay a $1.25 million fine to the New York State Liquor Authority for violating state laws prohibiting gifts to retailers that carry their beer.The authority found that Heineken USA, the American division of the big Dutch brewing company, illegally provided special patented draft systems to more than 800 bars and restaurants to help persuade those retailers to carry Heineken products.The system, called BrewLock, only fits Heineken beer kegs or those from Heineken-affiliated brands, like the Italian beer Moretti. 

Each BrewLock is worth about $500.State liquor laws prohibit alcoholic beverage manufacturers or wholesalers (distributors) from giving away anything of value to “artificially incentivize sales,” according to a liquor authority news release.
In addition to the BrewLock giveaways, which occured from 2014 to 2015, the liquor authority accused Heineken of illegally using a third party to conceal a transaction with at least one retailer for a different Heineken draft beer system called Blade.

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