Heineken, importers of Desperados beer, is battling Mexico’s Consejo Regulador del Tequila (“CRT”) over the beer being tequila flavored. Use of the name tequila in alcoholic beverages (like Champagne or Cognac) is a designation of origin regulated by the CRT. The CRT says the beer violates the  rules because the beer is, well, a beer and not a spirit.  According to Beverage Daily, the CRT says there is no tequila in the beer.  Beverage Daily adds, “Heineken denies the allegation and claims the flavoring it uses does contain genuine tequila which it buys in Mexico from one of the members of the CRT.”  A Heineken spokesperson told Beverage Daily, “…Desperados is a beer, flavored with Tequila, not a spirit.”

Heineken USA, Inc. reached a settlement with the California Department of Alcohol and Beverage Control (CABC) for, according to the CABC’s press release, a violation against Heineken for participating in an “illegal marketing scheme aimed at consumers.” The settlement was reached on February 10, 2017 and will require Heineken to pay a settlement fee in the amount of $30,000. The case stems from Heineken’s participation in a social media sampling campaign in late 2015.  Prior to the violation, the program received some press, including in Nightclub & Bar and Mobile Marketer.  As reported and further outlined in a Heineken press release, Heineken targeted consumers on Facebook and Twitter and consumers were instructed to download a coupon through Gratafy, the marketing platform app. The promotion offered consumers the opportunity to redeem their coupon in cities such as Los Angeles, Chicago, San Francisco and Houston. Once downloaded, the consumer could go to participating bars or restaurants and redeem the coupon for a free Heineken, Heineken Light or Dos Equis. According to the CABC’s press release, “the Trade Enforcement Unit conducted an inquiry into the proposed advertising campaign, determined it was an illegal marketing scheme, and advised Heineken it was unlawful prior to its implementation. Against ABC’s advisement, Heineken proceeded with launching the illegal marketing scheme. Despite ABC’s initial and a subsequent warnings about the unlawful activity, Heineken allowed the illegal marketing scheme to persist for several weeks.” Since the promotion directed consumers to specific retailers, Heineken was in violation of the California Alcohol Beverage Control Act. Heineken will face a 45…