Monday, July 6, 2009

Liquor Group files $1M+ Breach of Contract Claim Against Drinks Americas

Jacksonville, FL - Documents obtained in Duval County, FL show Liquor Group Wholesale (OTCBB:LIQR) filed claims for Breach of Contract among other counts against Drinks Americas (OTCBB:DKAM).

According to the Securities & Exchange Commission ( report, in April 2008 Liquor Group contracted and commenced representation of Drinks Americas products in the State of Michigan, an agreement which was swiftly amended to include Florida and subsequently Sixteen (16) additional states (all listed Control States except Mississippi) for a total of 18 US States. The contracts were for exclusive representation of brands marketed by Drinks Americas including: Trump Vodka® & Trump Flavored Vodkas®, Willie Nelson’s Old Whisky River Bourbon®, Damiana Liqueur®, Bo Dietl’s Casa BoMargo Wines®, Cohete Rum® & Aguilla Tequila®, and other Drinks Products as they become available. These agreements utilize Liquor Group’s patent pending bailment method for the sale of alcohol products to the state level. Once delivered at the state level, the privately owned Liquor Group companies or affiliated companies take over the operations representing the goods to bar/restaurant/liquor store customers.

On or about December 19, 2008, the report shows that Liquor Group notified Drinks Americas of numerous contract violations, including but not limited to overdue marketing funding and insufficient inventory to fill customer orders in excess of $300,000.00. Liquor Group documented that Drinks Americas representatives only responded to Liquor Group by saying that they would be able to bring the agreement into compliance soon.

The report goes on to show that multi-state inventory depletions and marketing fund positions were reconciled at the end of the first annum of the contract on April 1, 2009 showing a severe balance due by Drinks Americas to Liquor Group. Liquor Group also documented that Drinks Americas was given time to bring their accounts current and offered to revise the marketing agreements at this time, however no action was taken on their part to rectify Drinks Americas contract deficiencies.

At the time of this document filing, more than $800,000.00 of orders generated by Liquor Group remained unfilled by Drinks Americas, a major contract violation and contributor to the claim proceedings. The Control States of WV, IA, WY & OH have now terminated the listings of Drinks products.

When asked for a comment on the report, C.J. Eiras, President of Liquor Group Wholesale would only reluctantly state that he “Wished that Drinks Americas had the wherewithal and resources to fill these back-orders and to work this all out without it coming to this.” No one at Drinks Americas was available for comment at the time of this report.

Brandy Christine Reporting for

Brandy Christine is an independent reporter specializing in the alcohol beverage industry, reporting here for the Beverage News Network