After Summerfest operator
Milwaukee World Festival Inc. filed
a lawsuit against Milwaukee-based
Klement’s Sausage Company Inc. last December, alleging Klement’s had breached a sponsorship agreement, both companies have now decided to end the agreement.
"Milwaukee World Festival Inc. (MWF) and Klement’s have mutually determined to part ways and amicably separate from the previous sponsorship agreement," reads a statement from Klement's. "As part of the process, MWF has withdrawn its lawsuit against Klement’s. Both parties wish one another continued success in their respective businesses."
A spokesperson for Milwaukee World Festival declined to comment.
The now terminated sponsorship agreement would have run through 2027. In exchange for a stage sponsorship, Klement’s received other benefits including being named the official sausage of Summerfest and a variety of "on site signage and activations."
Milwaukee World Festival alleged that Klement’s failed to pay its 2022 sponsorship fee, in violation of the agreement, but Klement’s
later responded and said it had not violated the agreement.
"Unfortunately, Summerfest chose to go public with those negotiations, even though Klement’s is not in breach of the existing agreement, with the goal to create public pressure against
Klement’s and damage its reputation," reads a December statement from Klement’s.
Milwaukee World Festival must now find a new sponsor for the Klement’s Sausage and Beer Garden area on the Summerfest grounds. Documents related to the civil lawsuit filed by Milwaukee World Festival estimate the cost of renovating the area could be around $885,000.
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