BUSINESS
01/13/2019 16:52 EST | Updated 01/14/2019 15:21 EST

Canada Dry Ginger Ale Can’t Claim It’s ‘Made With Real Ginger’: U.S. Court Deal

The company now owes reimbursement money to American consumers.

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Cans of Canada Dry Ginger Ale at a bottling plant in Louisville, Kentucky, on April 21, 2015.

Turns out "Made from Real Ginger" actually means made from high fructose corn syrup, citric acid, preservatives and flavours.

As part of a settlement to false advertising lawsuits based in several U.S. states, Canada Dry ginger ale has agreed to stop overstating its ginger content, the National Post reports.

Your grandma's "I've-sworn-by-this-since-before-you-were-born" upset-tummy remedy of choice was sued last year by New York-based mom Julie Fletcher. She said she bought it for her kids because she thought it was "healthier alternative to regular sodas."

Fletcher's lawyer found Canada Dry contained such "a minuscule amount of a ginger flavour extract" that it could not possibly have any health benefits. In fact, the ginger compound content was far too low for humans to even taste, according to the Post.

But the "Made from Real Ginger" claim helped Keurig Dr. Pepper — the company that makes Canada Dry — see sales soar by almost nine per cent in the first six months of labelling on cans, bottles and other advertising and marketing efforts, New York court records say.

More from HuffPost Canada:

Internal Keurig Dr. Pepper documents also suggested that 30 per cent of ginger ale consumers drank more because they thought the real ginger was good for them, a California judge revealed.

With days to spare before they were expected in court, the company has agreed to offer payments to any American consumer who bought the drink since 2013. According to the Post report, reimbursement is capped at $5.20 per household without proof of purchase and $40 per household with proof of purchase.

Canadians are not eligible for the payment, but it does make you wonder when a similar challenge will take hold in Canada. It's only a matter of time before word spreads to scorned grandmas across the country.