A small business in Lyons that produces a coffee liqueur with a secret formula has filed a lawsuit against a Lyons-based distiller for allegedly stealing the recipe.
Richardo’s Liqueur, the owner of a proprietary formula for a coffee liqueur, filed a lawsuit Tuesday in Boulder County District Court against Spirit Hound Distillers.
The dispute involves allegations of breaches of contracts the two businesses entered, according to the complaint. Richardo’s secret formula gives the small business “a huge competitive advantage in the marketplace, just as the formula for Coca-Cola gives the Coca-Cola company a competitive advantage in the marketplace,” according to the complaint.
Spirit Hound, according to the lawsuit, proposed that it produce Richardo’s coffee liqueur, as well as have Richardo’s switch from its Colorado distributor to another distributor, one that Spirit Hound worked with. To protect its formula and its rights, Richardo’s had Spirit Hound sign a nondisclosure and confidentiality agreement.
Spirit Hound breached the agreement made with Richardo’s “by stealing and using Richardo’s work product” to create its own coffee liqueur, according to the lawsuit.
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