Just when we're convinced that we have the worst beer/wine/liq. laws and distributions systems on the books here in the Northern Branch of the Bible Belt, you read something like this.... Cheers, Jim ----- Forwarded message from John Wyzkiewicz &lt;j_wyzkiewicz(a)YAHOO.COM&gt; ----- X-MessageWall-Score: 0 (smtp-relay.enet.umn.edu) X-MessageWall-Warning: DNSBL/REJECT: Your mail server is listed by a DNS-based blacklist. Please see http://www.menet.umn.edu/mailblocked.html?mcx.tc.umn.edu/128.248.155.225 Date: Mon, 9 Aug 2004 07:35:27 -0700 Reply-To: John Wyzkiewicz &lt;j_wyzkiewicz(a)YAHOO.COM&gt; From: John Wyzkiewicz &lt;j_wyzkiewicz(a)YAHOO.COM&gt; Subject: Re: Goose Suit (article text) To: CBS-HB(a)LISTSERV.UIC.EDU In-Reply-To: <00db01c47e18$53100450$1701a8c0@newsouth> Precedence: list Reprinted without expressed written or oral consent from the loathsome Parent Company or any of it's wholly-owned subsidiaries: Suds are flying: Chicago's best-known local brewery, Goose Island Brewing Co., is locked in a nasty legal fight with its former distributor, who claims that the brewery's finances are shaky. United States Beverage LLC sued Goose in Cook County Circuit Court, claiming that the brewer unfairly terminated its relationship with the distributor earlier this year. Goose, whose best-selling brand is Honker's Ale, operates a brewpub in Wrigleyville and a small West Side brewery. Goose's flagship microbrewery at 1800 N. Clybourn Ave. is owned separately by Goose founder John Hall. In its suit, USB says that Goose Island's business has diminished and that it will lose its $2.55 million credit facility with LaSalle Bank effective in October. The brewery confirmed that its relationship with LaSalle is ending, but Hall said it is about to sign on with a new lender and disputed USB's assertions that it is in financial trouble. Still, the suit gives a rare glimpse into the challenges facing small brewers as they fight for drinkers in the slow-growing microbrewery industry. According to Information Resources Inc., Goose Island had a 29 percent share of the Chicago microbrew market last year, but sales slipped 7.4 percent, to $2.15 million. Its market share slipped more than 3 percent. (The figures don't include on-premise beer sales.) Hall said Friday that the company this year was growing "double digits" and that he expected to have a good year. It also helps that most Cubs games are sold out and the Wrigleyville location is doing well. Much of this fight is about who didn't do their part in building the business. USB signed on as Goose's distributor in 2000, paying Goose $1 million. USB also says that it agreed to bring in other subcontracting deals to help bring in more revenue. So USB invested $500,000 more into Goose's facilities so that it could begin producing Hooper's Hooch, a malt beverage. Hall said it was USB's promise that Hooper's would be a huge seller and would help utilize excess brewing capacity at its West Side plant. But Hooper's Hooch production never reached expected levels. "That really hurt us from a business standpoint," Hall said. According to the suit, by November 2003 Goose complained of financial problems and "requested more production business from USB." So USB moved production of its Slo beer brand to Goose. On April 2, Goose sent a letter to USB stating that it was terminating the contract with USB in 90 days, saying that USB didn't live up to its end of the bargain. Hall maintains Goose is close to agreements with other companies to make up for the lost production. ----- End forwarded message ----- -- ------------------------------ * * Dr. James Lee Ellingson, Adjunct Professor jellings(a)me.umn.edu * * University of Minnesota, tel: 651/645-0753 fax 651 XXX XXXX * * Great Lakes Brewing News, 1569 Laurel Ave., St. Paul, MN 55104 *