Kona Beer Maker Agrees to Payments, Label Change to Settle Suit

Craft Brew Alliance Inc. has agreed to change Kona beer labels and make payments to consumers to settle allegations that it deceived them into thinking Kona beers are brewed in Hawaii.

Theodore Broomfield alleged beers such as Longboard Island Lager and Big Wave Golden Ale come in packaging replete with illustrations of surfers and other images of Hawaii and Hawaiian culture. But they are brewed in less exotic locales like New Hampshire and Tennessee, he said in a suit in the U.S. District Court for the Northern District of California.

The proposed settlement covers all persons over 21 who bought ...