Seismic Brewing Company has filed a complaint alleging DBI Beverage Inc., Reyes Holdings, LLC, and Harbor Distributing LLC of violating the Clayton Act, the Sherman Act, and California’s Unfair Competition Law.
Seismic Brewing Company is a small, family-owned craft beer company; the complaint alleges that the largest distributor in the United States, Reyes, and the plaintiff’s former distributor, DBI, conspired to aid Reyes’ monopolization of the beer distribution market and hinder the plaintiff’s means of doing business.
According to the complaint, Reyes started acquiring beer distributors with the end goal of dominating beer distribution in California. In September 2019, Reyes acquired DBI. The complaint accuses the defendants of forcing craft brewing companies to negotiate new anti-competitive distribution agreements, which prohibit the brewers’ freedom to switch distributors. Seismic refused this agreement negotiation; and, as a result, the defendants targeted Seismic’s distribution points, resulting in substantial financial injuries to the plaintiff.
The plaintiff seeks injunctive relief to restore a competitive market, an order requiring Reyes to divest itself of unlawful acquisitions, and a recovery of the millions of dollars of damage the plaintiff incurred as a result of the defendant’s actions.
The plaintiffs are represented by Braunhagey and Borden LLP.
