Franz Hass takes legal action against US distributor Winebow

June 28, 2024

The Italian wine producer Franz Hass has initiated legal action against the US distributor Winebow. The company is accused of lost sales and non-compliance with a terminated contract.

In a California court document, Franz Hass claimed that his contract with Winebow was terminated on October 24, 2021. The producer said Winebow “refused” to accept the termination of the contract and instead claimed it was automatically renewed until 2026, giving him exclusivity for the brands in the United States.

The manufacturer claims that due to Winebow’s conduct, it lost sales in the United States between October 25, 2021 and January 20, 2022. This equated to $2,000,000 in lost wine sales, or a volume of approximately 37,000 cases.

The plaintiff further argues that Winebow “hamstrung” him even after he resumed his U.S. sales with various suppliers. Franz Hass said that despite terminating his contract in 2021, he “continued with his willful, unlawful interference with (his) business in California and the rest of the United States.”

Franz Hass added that Winebow had “further harmed” sales of its Kris Wines brand by “threatening” USA Wine West, a distributor it was in talks with, with legal action if it considered the contract terminated.

“Based on actual sales during the period 2015-2021, Franz Haas exported an average of 290,000 cases per year. Due to Defendant’s actions and obstructions in these states, Plaintiff lost sales of 283,000 cases in the subsequent years 2022 and 2023, an estimated $15.6 million in additional sales,” the company’s lawsuit states.

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Winebow claimed that the supply agreement could only be terminated for cause, was still valid and that the company had exclusive import rights for its Kris Wines brand in the United States.

Franz Hass is demanding compensation for lost wine sales.

The winemaker is currently working with RTM Imports to distribute his portfolio in the U.S. He explained that he had to post a $100,000 bond for his distributor because Winebow had threatened RTM with legal action.

Drinks only asked Winebow for comment.