Local Chicago Nightclub Hits a Dry Spell Following Charges of "Passing Off"

Wed Apr 30, 2008 9:00am EDT
 
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  SANTA MONICA, CA, Apr 30 (MARKET WIRE) -- 
 Red Bull North America, Inc. ("Red Bull") has won another lawsuit as part of
its ongoing effort to protect consumers. The court entered judgment against Wet,
a
Chicago-based nightclub, for deliberately and willfully "passing off" generic
energy drinks as Red Bull(R) in violation of federal law. The lawsuit, filed in
federal court, alleged that customers who ordered a Red Bull(R) at Wet routinely
received a substitute beverage without being notified of the substitution
or given the opportunity to accept or reject the stand-in product.

    The judgment includes a permanent injunction against Wet and its employees
that
prohibits "passing off" other beverages as Red Bull(R), as well as a
judgment against the owners and operators of Wet in the amount of
$679,827.48 which includes $102,837.48 to reimburse Red Bull for its
attorneys' fees and costs.

    Wet is the fourth establishment in the past year that Red Bull
successfullypursued to stop "passing off."  Red Bull obtained permanent
injunctions against and
settled with Houston-based Tavern for $150,000, Fort Lauderdale-based Dicey
Riley's for $75,000 and Orlando-based Roxy Night Club for an undisclosed amount.

    "We are very proactive in our attempts to discuss passing-off issues and
solutions with bars.  Our primary goal is to protect our brand and ensure the
customer clearly understands what they are receiving when they order a Red
Bull.  We only use legal action as a last resort, when it is clear a bar or
restaurant cannot effectively adhere to the law," says Chad Peffer, vice
president of sales, Red Bull North America. "In the end, it's not an
effective practice to sue any of our potential customers, but certain owners put
us in a situation that is not good for either party... especially considering
the
time and effort on our part and the financial settlements on theirs."

    When consumers pay for a premium beverage, they have a right to expect
thatit will be given to them. Consumers are encouraged to "demand the can" of
Red Bull(R) with their drink as proof that they are not being deceived.
Thebest way to distinguish Red Bull(R) from alternative products is the
packaging. Red Bull(R) is sold exclusively in its unique blue and silver
canand is never shot out of a beverage dispenser gun.

    "Red Bull pioneered the energy drink category and set the bar for premium
cocktails," says Matt Linder, president of Three Headed Productions, owner and
operator of several Chicago-based establishments, including LePassage, Salud,
Cans,
Juniors and Evil Olive.  "We only serve high-quality products at our bars and
give
our consumers exactly what they want. So when a customer orders a Red
Bull(R) and Vodka, that's what we give them."

    If consumers see passing off taking place, they can visit www.redbullusa.com
and select the "contact us" button on the company page, or send an email to
consumer.information@us.redbull.com.

    

MEDIA INFORMATION:
Patrice Radden
Red Bull Communications
(310) 460-5344
patrice.radden@us.redbull.com

Erin Mand
Publicis PR
(323) 866-6040
erin.mand@publicis-pr.com

Copyright 2008, Market Wire, All rights reserved.

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