Missouri, USA – A lengthy legal dispute between Breakthru Beverage Group (formerly Major Brands) and Mast-Jägermeister has come to a close after a decision from the U.S. Court of Appeals for the Eighth Circuit in November 2024, which overturned a previous verdict in favor of Breakthru. The case, which began with a wrongful termination lawsuit filed by Major Brands in 2018, has now been dismissed after nearly eight years of litigation.
Background of the Dispute
The conflict stemmed from the 2018 national distribution agreement between Mast-Jägermeister and Southern Glazer’s Wine & Spirits, which ended Major Brands’ decades-long distribution of Jägermeister in Missouri. Major Brands had been distributing the herbal liqueur in the state since the 1970s. However, this distribution arrangement had been based on an informal, unwritten contract. When Mast-Jägermeister moved its operations to Southern Glazer’s, Major Brands filed a lawsuit, alleging that the termination of the partnership violated Missouri franchise laws.
At the core of the legal action was Major Brands’ claim that Jägermeister’s actions were illegal because no “good cause” had been established before terminating the agreement. In 2021, a Missouri jury found Mast-Jägermeister guilty of breaching its contract, and Major Brands was awarded $11.75 million in damages.
Appeals Court Overturns Verdict
However, in November 2024, the Eighth Circuit Court of Appeals reversed the original ruling, siding with Mast-Jägermeister and Southern Glazer’s. The appeals court found that no franchise relationship had existed between Major Brands and Mast-Jägermeister, which ultimately led to the dismissal of the lawsuit.
Following this victory, Southern Glazer’s issued a statement noting the case had been “successfully resolved,” confirming that no settlement was paid by either Southern Glazer’s or Mast-Jägermeister.
Legal Positions from Southern Glazer’s and Jägermeister
Southern Glazer’s, the largest alcohol distributor in the U.S., firmly stood by its position throughout the litigation. In a statement, the company maintained that no franchise relationship had ever existed between it and Major Brands, and that its actions in the matter were entirely legal.
Alan Greenspan, Chief Legal and Compliance Officer for Southern Glazer’s, expressed satisfaction with the appeals court’s decision, stating, “We are very pleased with the Court of Appeal’s decision and the subsequent dismissal of the case. This confirms what we have said since day one – Jägermeister does not have a franchise relationship with Major Brands and our association with them is appropriate and lawful.”
End of the Legal Journey
After the ruling, Breakthru Beverage Group, which now owns Major Brands, chose to dismiss the case, formally ending the legal saga. Despite the dismissal, Breakthru did not provide a public statement regarding the outcome.
The final resolution marks the end of nearly eight years of litigation, allowing both Southern Glazer’s and Jägermeister to move forward without the financial burden of a settlement. This case serves as a notable example of the complexities surrounding franchise relationships and distribution agreements within the alcohol industry.
Impact on the Alcohol Distribution Landscape
This legal battle’s conclusion has significant implications for the alcohol distribution landscape, particularly in how franchise relationships are defined and managed. The case also sheds light on the growing role of distributors like Southern Glazer’s and Breakthru Beverage as they continue to dominate the alcohol industry. With the case now behind them, both Southern Glazer’s and Jägermeister are poised to continue their partnership without the ongoing distraction of litigation.
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