The High Court on Tuesday directed beer manufacturers East African Breweries Ltd and Keroche Breweries to stop further advertisement on the contest over beer bottles, until the hearing of a case filed by six beer distributors.
At the same time, Justice Grace Nzioka ordered the parties in the case to maintain a status quo, saying that the dispute stemmed from advertisements placed by the two beer markers more than a week ago, with each accusing the other over the use of the beer bottles.
The case was scheduled for hearing yesterday but it could not proceed following application by Competition Authority of Kenya, Inspector General of Police and the Attorney General, who are listed in the case sought more time to put in their responses.
Alexander Mugo, Jacob Wamiti, Phasty Wanjitu Wachira, Samuel Kamau, Catherine Wanjiru and Herman Mwaura, who filed the case, said were entrepreneurs engaged in the distribution of alcoholic products supplied to them by Keroche.
The distributors, through lawyer Irungu Kang’ata, told the court that they have invested millions in capital to set up, acquiring of business licences and distribution business.
While saying it was their only source of income, the distributors accused EABL and KBL of engaging in acts aimed at phasing out Keroche Breweries out of the market.
Kang’ata said the move by EABL of embossing all beer bottles with the universal shape with its unique initials is a negation of principles of a free and competitive market economy.
He said that the act of exclusively embossing the beer bottles is predatory, noting that it locks out other sellers of beer from the Kenyan market, who uses the same shape of bottle.
The lawyer said in the documents filed in court that allowing KBL and EABL exclusive use of the brown bottles is irrational and unreasonable and an abuse of intellectual property, misuse of dominance.
However in reply, EABL and KBL through Kamau Karori wants the court to dismiss the application saying it does not disclose any reasonable cause of action.
Karori further said the case seeks to frustrate a temporary injunction issued by another judge, restraining Keroche from distributing its Summit Larger and Vienna Ice ready to drink vodka with EABL’s engraved bottles or any other bottle bearing EABL mark which infringes on its trademark, pending the determination of the case.
He said that since the order was issued in 2017, every bottle bearing EABL’s trademark was deemed to belong to EABL.
The judge allowed Keroche to file further documents before Friday when the case will be heard.
