Suit filed over bottled water rights

Tuesday, Nov. 23, 1999 | 11:34 a.m.

J.W. Costello Beverage Co. of Las Vegas is seeking an injunction prohibiting Great Brands of Europe Inc. from ending Costello's exclusive distributor rights to sell Evian Water in Southern Nevada.

In a U.S. District Court suit, Costello Beverage, which was told its distributorship rights would end as of Jan. 7, 2000, alleged Great Brands, formerly known as Evian Waters of France Inc., can't terminate its agreement as long as its Evian sales performance isn't deficient, and said a replacement water product won't be available to Costello Beverage for its clients.

Costello Beverage said sales of Evian water, which account for about 55 percent of its business with hotel-casinos and about 85 percent of its business with drug store/mass merchandiser outlets, are expected to reach $4.5 million in 1999 and gross profits to hit $900,000. Costello Beverage's overall gross profit is 18 percent, while its gross profit on Evian water is 20 percent.

Great Brands' director of corporate communications, Michael Neuwirth, declined comment on the suit and wouldn't reveal the company's new Evian water distributor for Southern Nevada.

archive