Diageo Winners In Tennessee Spirits-Storage Battle

Diageo has been victorious in a legal conflict regarding regulation governing the storage of spirits in Tennessee, USA. The lawsuit, which was filed in April of this year, was aimed at reversing a 77-year-old law which stipulates that all spirits distilled in the state are to be stored within its borders at all times. Diageo initiated the action after the Tennessee Alcoholic Beverage Commission (ABC) said that it would deliberately break this law by storing spirits produced at its George Dickel distillery in Tullahoma, at a location in Louisville, Kentucky.     After evidence was presented in a federal court by George Dickel's master distiller, Tennessee's assistant Attorney General said the state had made the decision to not pursue penalities against Diageo, the Associated Press reported.    In reaction to the move, Guy Smith, Diageo North America's executive VP, stated: "We had always hoped for an amicable resolution of this question. The parties will work together to develop an order to be entered with the court that sets aside this complaint."   He added: “We look forward to continuing to work co-operatively with Director Bell and his colleagues at the Tennessee ABC and with the Attorney General's office."