Fireball Lawsuit Moves Forward; New Yorkers May Be Entitled to Payout

(Photo: Fireball/Facebook)

Earlier this month, a New York judge approved a class action lawsuit against Fireball and Parrot Bay, alleging that the brands knowingly misled consumers with malt-based products at gas stations and convenience stores.

If the class action is ruled in the plaintiff’s favor, any New York resident who purchased Fireball Malt after April 2, 2020, or Parrot Bay Malt after May 24, 2020, will automatically be entitled to a payout.

The lawsuit hinges on two complaints filed against parent company Sazerac in 2023. Sharon Pizarro, the first of the two plaintiffs, alleges that she bought bottles of Fireball under the false impression that it was a spirits-based beverage bottled at 33% ABV. Instead, she had purchased Fireball Cinnamon, a malt-based drink bottled at 16.5% ABV. The complaint alleges that the two products are “virtually identical,” differentiated only by the word “Whisky” and small text identifying the latter drink as a “Malt Beverage With Natural Whisky & Other Flavors and Carmel Color.”

Plaintiff Cindy Koonce lodged similar accusations against Parrot Bay. According to the complaint, the brand offers an “original” variety of coconut-flavored Puerto Rican rum at 21% ABV, causing undue confusion with a malt-based version sold at 16.5% ABV.

Fireball Malt and Parrot Bay Malt are commonly available at gas stations in states with regulations on where and how alcohol can be sold. Since the products are made from a malt base, akin to a beer or hard seltzer, they can technically be sold without a liquor license.

The class action alleges that the lack of distinct labeling was “intended to mislead consumers.” According to a survey cited in the original complaint, 63% of consumers for Parrot Bay Malt and 66% of consumers for Fireball Malt believed they contain distilled spirits.

Sazerac moved to dismiss the complaints, arguing that the plaintiffs couldn’t establish a commonly agreed price premium between spirit- and malt-based drinks. The company also took issue with the labeling accusations. Packaging describes Fireball Malt as “tasting like a smooth whisky” – according to Sazerac, “a clear sign that the product is not a whisky.”

U.S. District Judge Kenneth M. Karas was of a different opinion.

“And while Defendant argues that the label ‘tasting like a smooth whisky’ is a clear sign that the product is not a whisky, the Court disagrees with this interpretation,” Karas wrote. “A reader could reasonably understand the label to mean that the product is indeed whisky that tastes smooth like an expensive, well-aged whisky despite being a cheaper whisky.”

Pizarro and Koonce’s complaints were consolidated in June 2023  and will now proceed in the New York state court.

Sazerac is an American alcohol company headquartered in New Orleans, Louisiana. Apart from Fireball and Parrot Bay, the firm is best-known for high-end whiskey staples like Buffalo Trace, Pappy Van Winkle and Blanton’s Bourbon. The company has previously been hit with deceptive labeling lawsuits for Chi-Chi’s and Southern Comfort, both of which offer products in malt-based and spirits-based varieties.