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Distiller Challenges Oregon's Sales Ban
October 21, 2004

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News Summary

Diageo-Guinness USA Inc., the maker of Smirnoff Ice, has filed a lawsuit against the state of Oregon to invalidate a state law that bans the sale of "malternatives" in grocery stores, the Associated Press reported Oct. 16.

The company claims that the regulation fails to comply with the state's rule-making requirements.

The Oregon Liquor Control Commission (OLCC) adopted the regulation for malt beverages flavored with distilled spirits. According to the commission, drinks with more than one-half of one percent distilled alcohol can only be sold in state liquor stores.

The state Court of Appeals will hear the case.

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