SWA Wins Legal Battle Against US Fake Scotch Whisky

A Texas court has granted the SWA a consent judgment that prevents Arkay Beverages from producing or selling fake Scotch. The motion has become the latest example of legal action taken by the association against imitation and counterfeiting.

According to the SWA, fake Scotch whisky was sold by Arkay via its website and third-party retailers, including Amazon. Scotch whisky contains only cereals, water, and yeast, but Arkay’s whisky includes xanthan gum, carboxymethyl cellulose, and potassium sorbate.

The SWA said it became aware of the alcohol-free drink last year, but the firm displayed Scottish whisky branding this year  Therefore, it decided to go to court this year, as Arkay’s actions caused “harm and damage” to the Scotch whisky industry.

SWA Wins Court Ruling in the US Against Fake Whisky

In a surprise move, the SWA lodged its complaint in a US  court against the aggressor Arkay Beverages. A report by a London press stated the main contents of the complaint,

“Its complaint, filed with the US District Court in the Southern District of Texas, pointed to a number of well-established rules and regulations put in place to ensure Scotch whisky is legitimate. They include the stipulations that whisky can only be distilled in Scotland from water and barley, is matured in oak casks in Scotland for at least three years, and crucially, has a minimum alcoholic strength by volume of 40 per cent.”

Arkay’s version of whisky failed to meet the regulatory standards set by the 2009 UK law. Also the use of the phrase “Scottish whisky” creates an “improper association” with Scotch whisky to sell a non-alcohol product.

According to court documents, the SWA and the company have reached a temporary injunction and consent judgment. The case was resolved swiftly after the complaint was filed in February.

Under the terms of the deal, Arkay will be prohibited from manufacturing, distributing, selling, or advertising any product containing the terms “Scottish whisky” or “Scotch whisky” in the US without complying with the 2009 regulations. They will also be required to recall unsold bottles and destroy all labels.