KAILUA-KONA — A proposed settlement agreement in a lawsuit against Craft Brew Alliance, the owner of Kona Brewing Co., could mean partial refunds for anybody who purchased packs of its bottled or canned beers in the past few years.
The plan still requires the judge’s approval, and a hearing for the motion is scheduled next Thursday. If the agreement is approved, it would allow those who file a claim without proof of purchase to get up to $10 and up to $20 if they do have proof of purchase.
The agreement would settle a 2017 lawsuit filed in federal court in which the plaintiffs, California residents at the time, alleged the company’s packaging and advertising misleads customers into thinking the beer is brewed in Hawaii.
Although the company’s Kailua-Kona facility produces about 12,000 barrels of beer each year, its bottled and canned products, as well as its mainland draft, are brewed in Oregon, Washington state, Colorado and New Hampshire.
The tentative agreement was reached in April.
The company expects to spend $4.7 million to settle the lawsuit, although the exact figure will be based on the number of claims filed.
Those eligible to file claims include any consumers who since the end of February 2013 bought Kona Brewing beer in cans or bottles packaged in 4-packs, 6-packs, 12-packs and 24-packs.
Payments would range from $1.25 per 4-pack to $2.75 per 24-pack, with a maximum payment of $20 per household if proof of purchase is submitted. Otherwise the maximum is $10.
There isn’t a cap on how many claims Craft Brew Alliance must pay, but the settlement gives the company the option to terminate the agreement if the number of claims exceeds 1 million.
Email Cameron Miculka at cmiculka@westhawaiitoday.com.
