We told you about the shoot out between Diageo, owner of George Dickel Whiskey and Brown-Forman makers of Jack Daniel’s and specific production methods entitling the use of the term “Tennessee Whiskey”. The Legislature has taken the summer to think about it.
The next legal wrangle is Diageo’s lawsuit against the Tennessee Alcoholic Beverage Commission and its Director. This time it’s about a 1937 law that says that spirits produced in the state must be stored in the county where it was made or in an adjacent county. Seems that some barrels of spirits made at the George Dickel distillery are stored in Kentucky. The TABC Director warned them that it is a violation. However, Diageo has stated that the spirits are not used in George Dickel but used in other products or sold to third-party bottlers. Among other things, Diageo claims the 1937 law has never been enforced before; that the law violates the Commerce Clause of the Constitution, and that it will have an impact on production and employment at the Tennessee distillery.
Who knew distilling spirits in Tennessee could be so complicated?
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