Facts

On September 16, 2021, Jennifer Marek and others filed a class action suit against Molson Coors Beverage Company. Molson Coors was formed in 2005 when Molson of Canada merged with Coors of the United States. It manufactures, distributes, and sells several types of beverages including Vizzy, its brand of hard seltzers: carbonated, alcoholic beverages. The complaint forwarded several causes of action: violations of the Consumers Legal Remedies Act; false advertising; fraud, deceit, and/or misrepresentation; unfair business practices; and unjust enrichment.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendants, in labeling and marketing its Vizzy Hard Seltzer, were deceptive and unlawful. According to plaintiffs, defendants tried to push and market its Vizzy products as a "healthy" alcohol alternative. Hard seltzers such as Vizzy, are often purchased and consumed because they are low calorie, low sugar, inexpensive alcoholic drinks. Defendants, riding on that premise, labeled many of its Vizzy hard seltzers as being made "with Antioxidant vitamin C from acerola superfruit." However, plaintiffs asserted that the actual amount of vitamin C in the products was insignificant, and any health benefits obtained from consumption of the beverage would be negligible given the alcohol it contained.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions, arguing it complied with all applicable federal nutrition label laws and state consumer protection statutes. It noted that its products did contain vitamin C in the amount attested on its labels, and that plaintiffs did not allege that any statement was false. Moreover, no reasonable consumer would be misled by the label's claim: it properly reports the amount of vitamin C; clearly states that it contains alcohol; and includes the federally mandated Surgeon General's warning. Accordingly, no reasonable consumer would think that drinking the Vizzy hard seltzer was healthy or the same as eating a fruit.

Result

The case settled for $9.5 million and defendants agreed to remove the vitamin C claims from its packaging.

Other Information

Final approval hearing will be held on July 12, 2023.