Mediation Possible in Dispute between Brewing Companies
The MillerCoors brewing company has responded to the lawsuit filed by Pabst Brewing Co. that involves the brewing agreement between both companies. Allegedly, the decision to close the MillerCoors brewery in Eden is in question.
According to court documents filed in March, Pabst is accusing MillerCoors of acting in bad faith. The brewery claims it lacks the brewing capacity to extend the current agreement that allows MillerCoors to brew millions of barrels of beer for Pabst. Pabst has requested up to $400 million in damages in the lawsuit.
MillerCoors filed its answer stating it had to obligation to extend the existing agreement that was due to expire in 2020. It also claimed the company has worked with Pabst to find an alternative solution, but as of yet none has been reached.
In the Wisconsin lawsuit, MillerCoors denies it abandoned Pabst, and alleges it has acted in good faith and been as fair as possible in its interaction during the course of the 17 year relationship.
The dispute comes after MillerCoors deciding to close Eden brewery in 2016, which as a decision made because production levels declined by nine million gallons over a seven year period. There are more than 500 workers at the Eden brewery and the move is expected to be devastating to all of Rockingham County’s economy. The decision to close Eden came while the breweries were negotiating an extension of the existing agreement. Pabst is accusing MillerCoors of refusing to lease or sell Eden by naming a price too far above market value.