Top Beer Wholesaler Hit With Antitrust Suit by Craft Brewer (1)

Reyes Holdings LLC, the top U.S. beer distributor, is facing federal antitrust litigation in San Francisco over claims the company is threatening to decimate the craft beer industry by forcing “onerous” contract terms on brewers and retaliating against those that resist.

The lawsuit, filed late Tuesday by Seismic Brewing Co., accuses Reyes of exploiting its size and clout to buy out rivals in the California market—home to craft brewers doing $9 billion a year in statewide business—and using “sham” contract assignments to lock brewers into deals that make it “virtually impossible” for them to switch to competing wholesalers.

“When Seismic ...