A U.S Court of Appeals ruled in favor of MillerCoors finding the brewer did not violate its distribution agreement with a beer distributor or Pennsylvania's alcohol beverage laws when it (i) assigned distribution rights for its new craft beer brands to the distributor's competitors and (ii) conditioned the award of future brands on the distributor establishing a new entity devoted to MillerCoors products.

The distributor had exclusivity for specified MillerCoors' products in the Pittsburgh area. The Agreement gave MillerCoors the right to add new products to the exclusive distribution list and gave the distributor the right to sell other brewers' beer brands without MillerCoors' consent. The distributor exercised that right by selling Anheuser-Busch products for many years.

In 2012 and 2013, MillerCoors began marketing three new craft and specialty beers, Batch 19, Third Shift, and Redd's Apple Ale, and awarded distribution rights for these new brands to the distributor's competitors, prompting a lawsuit. The distributor claimed it was denied distribution rights to the new brands because it also sold Anheuser-Busch products; and claimed MillerCoors said it would have to create a new entity dedicated exclusively to MillerCoors to be considered for rights to distribute new MillerCoors products. The distributor sought a judgment saying MillerCoors could not make it a condition to getting other MillerCoors products, that the distributor not sell other brewers' products.

The Third Circuit affirmed a trial court decision that rejected the distributor's claim. The Third Circuit ruled that MillerCoors did not violate its contract or state law by having a selection process and exercising its contractual right to choose another distributor for its new brands. Though state beer distribution laws give protection to beer distributors, brewers can retain significant control over their brands through well-drafted contractual provisions.

See: Frank B. Fuhrer Wholesale Co. v. MillerCoors LLC.