A federal jury in Illinois has ruled against Boston Beer, awarding Ardagh Metal Packaging USA Corp roughly $175.5 million in damages.

The legal battle, which began in late 2022, centered on allegations that the brewer behind Samuel Adams and Twisted Tea violated a supply agreement by failing to purchase the required minimum volume of aluminium cans between 2021 and 2025.

While the verdict has been filed, Boston Beer noted in a recent SEC filing that a final judgment has not yet been entered. The company maintains that it did not breach the contract and plans to challenge the ruling through post-trial motions and appeals. To cover the potential cost, the group expects to record a one-time litigation expense, utilising its existing credit lines and cash reserves.

Key Details: Boston Beer vs. Ardagh Metal Packaging

• The Verdict: A jury for the U.S. District Court for the Northern District of Illinois found Boston Beer liable for $175.5 million in damages.
• The Conflict: Ardagh sued the beverage company for allegedly falling short of contractual purchase minimums for aluminum containers over a five-year period.
• Company Stance: Boston Beer continues to deny any breach of contract and intends to pursue all legal avenues for appeal.
• Financial Impact: The brewer had previously estimated potential losses between $0 and $300 million. They plan to fund the settlement through available cash and credit if the ruling stands.

Credit, Just Drinks.