BGI Ethiopia’s legal wrangling pile up as the brewer adds a lawsuit from some of its largest distributors to the property sale saga with Purpose Black. Fourteen leading BGI distributors, accounting for nearly half of its network, accuse the company of a breach of contract by awarding their distribution market segments to new players.
The distributors filed a legal suit in December 2023, seeking an injunction order on BGI’s new distribution contracts. The injunction has been granted.
“We have a two-year contract with BGI to distribute its products in market segments assigned to us,” said Sintayehu Gebresellassie, president of the distributors’ association. “Legally, we have a year and a half before BGI gets the window to decide whether to onboard new distributors or continue with us. But BGI has overridden the contract and started giving away our market to new distributors.”
The Reporter has confirmed BGI and the original distributors entered into a contract in July 2023. Members of the association have presented transaction receipts that indicate the new distributors contracted by BGI have already begun work in market segments assigned to their predecessors.
Attorneys representing BGI Ethiopia filed a request for a reversal of the injunction with the Federal First Instance Court last month. Judges have rejected the plea.
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