Beverage Distributors, Inc., a Corporation v. Olympia Brewing Co., a Corporation

This is an action by Beverage Distributors, Inc. to recover treble damages from Olympia Brewing Company under Section 4 of the Clayton Act, 15 U.S.C. § 15 , for violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 , and for injunctive relief. 15 U.S.C. § 26 . Jurisdiction is also invoked under 28 U.S.C. § 1337 . (General jurisdiction of district courts over trade restraints and monopolies).

FACTS AND CONTENTIONS

Olympia Brewing Company (Olympia) with its principal brewery in Tumwater, Washington, is a brewer of various beer products. It has been in business on the west coast and elsewhere for many years marketing its brew to the public through sales to distributors who buy in quantity and at a wholesale price. The distributor or wholesaler markets his beer to the retailer who sells to the consumer. Olympia in 1969 was the second largest selling beer in California and in 1960 was the fourth largest. Beverage Distributors, Inc. (B.D.I.), is a licensed beer wholesaler distributing beer, among other products, in California, Nevada and Arizona.

At the time B.D.I. began distributing Olympia products, B.D.I. was a wholly-owned subsidiary of Safeway Stores, Inc., and was the only…