Miller Brewing Co. will not be allowed to terminate a production agreement with Boston Beer Co. early, it was announced last week. Miller filed with the American Arbitration Association at the end of last year in the hope of ending the production agreement as of May 30 2004. Boston reported that a panel of arbitrators had decided that the early termination would not be permitted. Miller brews beer for Boston at two locations, and wanted to close one of the sites in Washington with a view to terminating the agreement. The decision by the panel means that Miller must reimburse Boston for its legal fees and expenses in the proceedings.
Neither company was available for comment, although the agreement is thought to be valid until 2008, and potentially up to the end of 2010.