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Archive for the ‘vodka’ Category

Trumpy Libations

This is not quite the Trump Vodka of yore, but it is quite Trumpy nonetheless. Don’t you think so?

The whiskey on the left is America First Whiskey , approved for a DSP in San Marcos, California. I believe I see some sharks and monster trucks to go along with the tanks, jets, and deltoids. I found a discussion about the goals for this label, and it appears that the designer nailed it:  “We want people who love Donald Trump and the idea of “Make America Great Again” to look at this logo and say ‘Hell yes! That’s the whiskey I want!'” They also considered throwing in some fanny packs, and a T-Rex — but perhaps that would go too far. The bottler proclaimed:  “We’re [making a whiskey for Americans]  interested in Freedom, beards, rifles, explosions, The US Constitution, military/veterans, and reflecting on how badass Donald Trump is.”

The wine, on the right, is branded as Make America Grape Again , American Red Wine. It is bottled by Azari Winery of Petaluma, California.

And then there is Covfefe, with no less than six related label approvals:

  1. Artisanal Covfefe Stout
  2. Imperialist Pig Covfefe Stout
  3. Covfefe Merlot
  4. Covfefe Red
  5. Saugatuck Covfefe Ale
  6. ………………….and…………………………..the first one out of the gate is Surly Covfefe Beer (approved June 7, 2017, just a few days after the infamous tweet of May 31, 2017 )

In addition, there are no less than 38 trademark applications including the term COVFEFE.

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Main Tito’s Case Dismissed

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The main Tito’s Handmade Vodka case has been dismissed, after 19 months of heated litigation. Details are not available so far.

The main case was Hofmann v. Fifth Dimension, Inc. (first filed in state court in September of 2014 then removed to federal court in San Diego a month later). A second and similar case, Cabrera v. Fifth Generation, Inc. , also got dismissed on the same day.

On April 22, 2016, both sides in both cases filed joint motions to dismiss. On May 3, Judge Miller of the U.S. District Court for the Southern District of California issued an order in each case, granting the parties’ joint motions.

At one point there were at least eight class action lawsuits against Tito’s Vodka, scattered around the U.S., challenging the very prominent references to “Handmade,” on the product’s labeling and advertising. There are no signs of any label changes, and Google says this has not been in the press to date.

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Trump Vodka

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Trump is riding high in the polls at this very moment. So high that Mitt Romney just attempted to slow Donald’s roll, by saying “what ever happened to Trump Vodka?” Indeed. All faithful readers of this blog had to know that the 2016 contest would eventually come down to matters of spirituous liquors. Mitt said :

But wait, you say, isn’t he a huge business success that knows what he’s talking about? No he isn’t. His bankruptcies have crushed small businesses and the men and women who worked for them. He inherited his business, he didn’t create it. And what ever happened to Trump Airlines? How about Trump University? And then there’s Trump Magazine and Trump Vodka and Trump Steaks, and Trump Mortgage? A business genius he is not.

Mitt has a point. I have rarely seen a less thoughtful label concept. The label makes a hollow claim that it’s “Super Premium” and “The World’s Finest” — with — wait for it —  nothing to back it up. There is almost nothing of note on the label or the application. I see about seven approvals, between May of 2006 and September of 2007, before the brand was put out of its misery .

This article reports that the bottles were emblazoned with the slogan “Success Distilled,” but I don’t see it on the approvals, as would surely be required (to comply with things like laws). It continues:

As for the vodka itself, it was created by Wanders Distillery in Holland, distilled five times from “select European wheat,” and then rested for six months in stainless steel vats before bottling at 80 proof. … The only trouble was, nobody bought it. By the end of 2007 it barely registered among the top-selling vodkas, badly trailing the likes of Smirnoff and no threat whatsoever to Grey Goose. Go figure that customers wouldn’t line up for a product that existed for the sole purpose of one-upping Trump’s friend. Who would have guessed that drinkers wouldn’t hand their money to a teetotaler who had no idea what his own product tasted like. In 2008, less than two years after launch, the Trump Vodka trademark was abandoned .

Among the other bad ideas, is there any point to resting the stuff in stainless steel?

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Another Judge Chimes in on Tito’s

On Tuesday, January 12, 2016, a federal district court in New York granted in part and denied in part Tito’s “Handmade” Vodka’s motion to dismiss several claims brought against it by a class of consumers in the case Singleton v. Fifth Generation, Inc .

Judge Brenda K. Sannes of the U.S. District Court for the Northern District of New York issued the opinion, holding that federal approval of Tito’s labels does not provide Tito’s with a “safe harbor” from litigation, and that Tito’s use of the term “handmade” and the phrase “crafted in an old fashioned pot still” “could plausibly mislead a reasonable consumer to believe that [Tito’s] vodka is made in a hands-on, small-batch process.”

Judge Sannes’ decision to allow Singleton to move forward marks yet another instance of a federal judge finding merit in false labeling claims against Tito’s. Singleton joins Hoffman v. Fifth Generation, Inc. and Cabrera v. Fifth Generation, Inc. (both federal cases in California) as well as Pye v. Fifth Generation, Inc. (a federal case in Florida) and Terlesky v. Fifth Generation, Inc. (a federal case in Ohio), which have all survived motions by Tito’s to cut the cases short.

Singleton is more akin to the two California cases, as the judges in all three refused to apply the safe harbor and held that the term “handmade” is not puffery, and therefore actionable. The judges in Pye and Terlesky , on the other hand, both applied the safe harbor, but held that consumers did state a valid claim for breach of warranty based on Tito’s statement that its vodka is “crafted in an old-fashioned pot still.” Judge Sannes, however, dismissed the breach of warranty claims in Singleton.

With at least ten distinct cases brought by classes of consumers against Tito’s over the past year and a half, it can be difficult to keep track of how each side is faring. What is clear is that Tito’s has won two cases— Aliano v. Fifth Generation, Inc. in Illinois, and Wilson v. Fifth Generation, Inc. in Alabama—as both cases have been dismissed and the time to appeal has expired. It also seems relatively safe to say that Tito’s has the high ground in Pye and Terlesky , as the false labeling claims have been dismissed, and only the breach of warranty claims remain. What is less clear, however, is how Tito’s will fare in Singleton, Cabrera, and Hofmann , all of which are all moving forward on the plaintiffs’ mightiest claim—that they were deceived by Tito’s use of the term “handmade.”

Because Singleton survived (in part) Tito’s motion to dismiss, Tito’s will have to answer the consumer-plaintiffs’ claims. Tito’s will, however, have another chance to dismantle the plaintiffs’ case before it goes to trial, by filing a motion for summary judgment. Tito’s tried this in both Cabrera and Hofmann , but was unsuccessful. As for the three other cases against Tito’s (not listed here), the relevant courts have yet to rule on Tito’s motions to dismiss.

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Tito’s Scorecard

score I don’t mean to keep harping on the Tito’s Vodka cases — but there sure are a lot of them — and they are important. Because there are so many, it is not easy to keep track of how it’s going, hence this handy Scorecard. Most of the cases are slowly grinding along, with no clear winner or loser (as shown with the ⇔ symbol). At one extreme, the Aliano case went especially well for Tito (⇑). At the other extreme is the Hofmann case (⇓). In late November Judge Miller allowed Hofmann , the first-filed case, to go forward, past the defendant’s motion for summary judgment. It got even worse, five days later, when the court gave the plaintiffs permission to go into the plant and see exactly how Tito’s Vodka is made, despite the company’s strong objections.


Plaintiff (State) Status (Filed Date) Notes
Aliano (IL) Closed. Dismissed 9/24/2015. (11/7/2014) ⇑⇑ Big win for Tito.
Cabrera (CA) Open. On 11/20/2015 Judge Miller denied Tito's motion for summary judgment. (12/22/2014) ⇓ This case is not going well for the defendant.
Consolidation Closed. The Hofmann lawyers withdrew their motion to consolidate the cases listed on this table on 5/15/2015. (4/6/2015)
Emanuello (MA) Open. (4/3/2015)
Grayson (NV) Open. (1/26/2015)
Hofmann (CA) Open. On 11/20/2015 Judge Miller denied Tito's motion for summary judgment , and on 11/25/2015 the court ok'd a site visit. (9/15/2014) ⇓⇓ This case is not going well for the defendant.
McBrearty (NJ) Open. (10/24/2014)
Pye (FL) Open. On 9/23/2015 the federal court dismissed the statutory deception-type claims but let stand the warranty-type claims. (9/25/2014)
Singleton (NY) Open. (4/7/2015)
Terlesky (OH) Open. 11/17/2015 the court dismissed the statutory deception-type claims but let stand the warranty-type claims. (6/4/2015)
Wilson (AL) Closed. Dismissed 9/30/2015. (8/4/2015) ⇑ Win for Tito.

We reached out to Tito and his lead lawyer to make sure we are not missing anything important, and to ask a few questions, as follows. From early on, Tito said he knew it was going to be a long haul.

How’s it going? Business has continued to be good. The lawsuits have been a distraction. But our consumer base is growing, and they have been extremely loyal. They appreciate Tito’s Handmade Vodka for what it is:  a premium quality vodka at a price they can afford. That’s what we set out to make, and the fact that our fans appreciate it makes it all worthwhile.

Do you still think you are going to win? Yes, we do believe we will win. So far, the cases that have been decided on the merits have gone our way. The others are still in the early stages.

Anything you want to say and can say that has not already been in the media? As the courts get more into the issues, they are starting to understand that the regulatory process we have to go through to get label approval means something. And when the federal government issues an approval for our labels, it means they have found them to be in compliance and not misleading to consumers. Everyone in the industry should be able to rely on their approved labels to do business.

Why not just settle or compromise? Settling cases like these simply invites more people to bring more cases. Some principles are worth fighting for.

Biggest surprises about our legal system, so far? Things move slowly in the court system. And in the early stages, people can make a lot of baseless accusations and get the benefit of the doubt for a long time, with no real skin in the game and no downside when those accusations are disproven.

How if at all have the cases affected sales? I haven’t had anyone tell me they won’t buy the product because we’ve been sued. To the contrary, I’ve had people tell me that this means I’ve arrived. All I know is we keep doing the same thing we’ve been doing for years; we just do more of it.

What else? On the Florida case … continued here .

With so many cases pending, and so much at stake, it won’t be long until this scorecard needs a major update.

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