Lawsuit Claims MillerCoors Is Trying To Put Pabst Out Of Business

CHICAGO — Pabst Brewing Company has filed a lawsuit against its longtime partner MillerCoors, and the two companies headed to court on Monday. The lawsuit claims that MillerCoors is trying to put Pabst out of business.

For nearly two decades, MillerCoors has been brewing Pabst's Blue Ribbon, Old Milwaukee, Lone Star and Natty Boh beers. The two companies signed a brewing agreement in 1999 that's set to expire in 2020, with two options to renew — neither of which MillerCoors wants.

Pabst said that without a renewal of the agreement, it will likely have to stop producing many of its brands. The suit claims MillerCoors is trying to drive its competition out of business, and seeks more than $400 million in damages. The suit also asks that MillerCoors work "in good faith" to help find a solution.

“Even though MillerCoors’ market power is much larger than Pabst’s, we will not allow this industry bully to push us around,” Pabst said in a statement. “We are confident that the court will see MillerCoors’ fabricated ‘capacity’ concerns for what they are: a thinly veiled, bad faith attempt to unlawfully hurt a competitor.”

MillerCoors did not immediately respond to a request for comment; however according to multiple reports, the company said it's not obligated to renew the deal, and doesn't have the capacity to keep brewing the Pabst beers. MillerCoors closed a brewery in North Carolina in 2016, and has previously said that it may have to shut down a brewery in California.

The trial, which is being held in Milwaukee County Circuit Court, is expected to wrap up on Nov. 30.

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