Interesting Texas Decision On Cross-Ownership Prohibition Between Manufacturer and Retailer

Interesting case from the end of last year in Texas regarding the attempts of a brewery affiliated retailer trying to secure a license in Texas.

Cadena Commercial USA Corp. is ultimately owned by FEMSA (makers of Dos Equis among other beers).  Cadena applied for a Texas wine and beer retailers off premise license.  The Texas ABC rejected the application because it found that FEMSA had a sufficient interest in Heineken’s brewing subsidiary to be considered a manufacturer, which prohibited it from having an interest in a retailer under Texas law.    On December 20, 2012, the Court agreed with the Texas ABC  in this order.

A big thanks to Evan Lawson of Lawson and Weitzen in Boston for the heads up and background on this case.  Evan served as an expert witness for the state of Texas on this case on the three tiered system and what constitutes a prohibited interest.

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