India: Miller Brewing Co. is sued by India Breweries Inc.
India Breweries Inc. that agreed to sell Miller High Life in India has sued in U.S. District Court Milwaukee beer maker, Miller Brewing Co., accusing it of backing out of the contract, national media sources communicated on April 30.
The suit claims the two companies reached a 10-year licensing agreement in 1999 for India brewers to brew and sell High Life and other Miller brands in India. India Breweries, based in Toronto, entered a joint venture with Indian brewer Mohan Meakin Ltd. that included improvements to Mohan Breweries where the Miller brands would be produced.
But the suit filed this week said Miller executives rejected these breweries, and postponed plans to visit other breweries.
Miller said in 2000 that other breweries did not have the capability to produce its beer. India Breweries' lawsuit contends those “trivial alleged deficiencies'' could have been easily fixed, and were used by Miller as “a subterfuge'' to break the contract.
The pact was formally terminated by Miller in 2001 with a claim that India Breweries did not have the proper brewing capacity.
Miller was sold in 2002 to South African Breweries Plc, now known as SABMiller Plc. The lawsuit says SABMiller has operations in India, where it sells Indian beers.
Miller spokesman Scott Bussen said in a statement that his company had fulfilled its contract obligations, and the pact expired after India Breweries “did not deliver on commitments they had made.''
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