Anheuser-Busch Agrees to Label Changes in ‘Ritas’ Drinks Deal

Anheuser Busch LLC has agreed to label changes and cash payments to resolve allegations that it deceptively marketed its cocktail-named Ritas drinks, according to a Missouri federal court filing seeking initial approval of a nationwide class settlement.

Megan Browning, Adam Kesselring, and others alleged the “Sparkling Margarita” drinks contain no tequila, “Mojito” drinks are made without rum, and “Sangria” and “Rosé” drinks lack wine. The drinks are nothing more than flavored beer, they said.

Anheuser-Busch has agreed to add the words “Malt Beverage” on the drinks’ packaging and to include disclaimers on the product websites noting that the drinks don’t contain distilled spirits, the Monday filing said.

The settlement covers those who purchased any of the products between Jan. 1, 2018, and the date the US District Court for the Western District of Missouri grants preliminary approval.

Class members with proof of purchase may recover up to $21.25 per household. Those without purchase substantiation are eligible for up to $9.75 per household.

Should the settlement class members submit more than one million claims, irrespective of the total dollar amount, Anheuser-Busch has the unconditional right, but not the obligation, to terminate the agreement. If it does so, the brewer must give written notice to class counsel within 10 days of the claim submissions.

The plaintiffs’ attorneys may seek up to $2.1 million in fees and costs, and may request service awards up to $2,500 for each of the six class representatives. Anheuser-Busch retains the right to oppose those awards.

Judge Stephen R. Bough oversees the case.

Last year, the court advanced the lawsuit, ruling that Browning and Kesselring sufficiently alleged the company’s portrayal would likely mislead a reasonable consumer into thinking the drinks have the alcohol associated with their names when they really don’t.

A similar suit in the Southern District of New York was voluntarily dismissed. That court previously had allowed claims under New York consumer protection law.

Dollar, Burns, Becker, & Hershewe LC and Faruqi & Faruqi LLP represent the plaintiffs. Dowd Bennett LLP represents Anheuser-Busch.

The case is Browning v. Anheuser-Busch, LLC, W.D. Mo., No. 4:20-cv-00889, motion 7/18/22.