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First Posted: 6/10/2014 (AP) Alcohol regulators have abruptly ended an investigation into whether global liquor giant Diageo PLC violated state laws by storing whiskey made in Tennessee in neighboring Kentucky.
The decision came Tuesday after master distiller John Lunn testified that the liquor stored in Kentucky would be blended with other Diageo spirits, and that George Dickel Tennessee Whisky has been made and stored at the distillery all along.
Diageo and the state had been fighting in federal court over a law that requires whiskey made in Tennessee to be stored in or around the county where it is distilled. Diageo said the law violated interstate commerce rights under the U.S. Constitution.
Assistant Attorney General Kyle Hixson said in federal court after Lunn's testimony that the state would not pursue penalties against Diageo, though he declined to say why.
<a title="Associated Press" href="http://www.ap.org" class="url org fn">Associated Press</a>

Tenn. drops investigation into liquor giant Diageo