ROCKLIN, Calif. — Tension is brewing in Placer County between Rocklin and Lincoln breweries now engaged in a legal battle over trade secrets and breach of contract, among other complaints.
Slice Beer Company filed a civil action accusing Shred Beer Company along with Head Brewmaster Zachary Frasher and Managing Member Amy Heller of trade secret misappropriation, unfair competition, and more.
Shred Beer Company filed a countersuit accusing Slice Beer Company and CEO Russel Yeager of breach of contract, violation of California's unfair competition law and more.
Richard Hall, the attorney representing Slice Beer Company, says Frasher withdrew Slice Beer Company from competitions, setting all this into motion.
Slice Beer Company files lawsuit against Shred Beer Company
In the lawsuit filed May 4, 2023, Slice accused Shred Beer Company along with Frasher and Heller of breach of fiduciary duty, trade secret misappropriation, computer crimes and more.
Frasher started working at Slice in June 2017 as Head Brewmaster and Director. He became a member of the Board of Directors in Aug. 2019. Slice accused Frasher of preventing the brewery from participating in the Brewers Association of Boulder, Colorado Craft Brewers Conference and BrewExpo World Cup competition by cancelling Slice's participation.
In court documents, Slice accuses Frasher of breaching his fiduciary duty as the director by pursuing his own competing business in Shred sometime in 2022.
"In fact, when Frasher left Slice in April 2023, the private recipes, processes, and procedures maintained by him on behalf of Slice as the Head Brewmaster disappeared from the offices of Slice and in some cases deleted from the EKOS computer systems maintained by Frasher for Slice," according to court documents filed in the U.S. District Court in the Eastern District of California.
Slice says in court documents that at least 150 beer recipes were deleted from the computer system. They are accusing the defendants of appropriating trade secrets and sabotaging Slice by "losing" private recipes.
Slice also says the name "Shred Beer Company" is similar to their name in an attempt to confuse the public and "diminish the value of Slice."
"Slice is informed and believes, and on that basis allege, that Frasher’s wrongful acts described above were undertaken with the intent to deceive and defraud Slice," according to court documents.
Slice is accusing Heller of aiding and abetting Frasher in his trade secret misappropriation.
“Zack and Amy are obviously disappointed in Slice’s reaction to Zack’s desire to partner with Amy on their own project. They are working hard to make Shred a success and fully expect Slice will continue to enjoy the success that it found during Zack’s tenure. Zack is going to hold Slice to its commitment to repurchase his shares, but is focused on turning out great beers while the legal process plays out," Josiah Prendergast, the attorney representing Shred Beer Company, wrote in a statement to ABC10.
Shred Beer Company files countersuit against Slice Beer Company
Shred Beer Company filed a countersuit June 16, 2023, accusing Slice Beer Company and CEO Russel Yeager of breach of contract, defamation and violation of California's unfair competition law.
"Reminiscent of a jilted lover, after Slice lured Frasher away from local stalwart Moonraker Brewing Company in 2019, Slice appears to have decided that if it can’t have Frasher, no one can," according to court documents.
Though the countersuit alleges Frasher co-founded Slice and was the only head brewer it had known, Hall says Slice started without Frasher and he is not a founder but was rather brought on after the company formed.
Shred says in the lawsuit Slice breached bylaws by not purchasing Frasher's 2,000 shares of Slice stock, or about 20% ownership interest.
Hall told ABC10 Slice had the check for the shares written up, but Frasher allegedly never turned in his computer or keys and didn't restore the missing recipes.
Upon announcing he would be leaving Slice, Frasher worked with George Wisniewski, Slice's new head brewer, on the systems and procedures. According to court documents, Frasher also wrote "several new recipes for Wisniewski to help launch him into the role of head brewer."
Shred also alleges Yeager made defamatory statements to third parties, including others in the craft beer industry.
"Counterclaimants suffered harm as a result of Yeager’s and Slice’s false statements, including harm to their reputations and lost business Shred Beer Company otherwise would have obtained at and since its grand opening," according to the lawsuit.
Shred said in its filing Slice and Yeager will continue making false statements about Shred's business.
Where does the lawsuit stand now?
Prendergast, who represents Shred, says all claims and counterclaims have been served and answered.
The two parties, through their attorneys, are set to have a discussion about discovery this month and submit a joint report about anticipated discovery.
"So the case is in the very early stages," Prendergast wrote.
Hall, who represents Slice, says he prefers mediation and is open to it, but they're prepared for a trial if necessary.
"If we need to we'll take it out to a jury," Hall said.
Watch more on ABC10: Fatal shooting inside Roseville Galleria parking garage
