Wednesday. Jump over the hump.

• Sunny with a high of 70.

Today's newsletter is 966 words, a 3.5-minute read.

A Philly couple is suing La Colombe, alleging the coffee giant is working with one of their rivals abroad and undermining their business.

Why it matters: The allegations of double-dealing come from a couple who say they were early investors in the Philly-based coffee chain.

Driving the news: Myung Kee "Nick" Hwang and his wife, Linda, say they reached an exclusive licensing deal with La Colombe in 2010 that paved the way for them to open a coffee shop in South Korea and sell the company's coffee to other businesses, per a federal lawsuit filed earlier this month.

• But the Hwangs say La Colombe is now doing business in Seoul with Ralph's Coffee, owned by fashion designer Ralph Lauren.
• The couple has asked a judge to stop La Colombe from continuing to provide coffee and trade secrets to Ralph's Coffee, saying their actions are causing "irreparable harm" to their business.

Zoom in: The Hwangs, entrepreneurs and landlords who moved to the Philly region more than three decades ago, began selling La Colombe at one of their small Philly shops not long after the coffee company was founded in 1994.

• They "fell in love" with the coffee, the couple's attorney, Firouzeh Nur-Vaccaro, tells Axios.
• So much so that when co-founders Todd Carmichael and Jean Philippe Iberti needed capital to expand, the Hwangs pumped in cash and became minority stakeholders in the business, according to the lawsuit.

The couple's stake was eventually bought out, but not before they struck the licensing deal, which contained a provision that kept La Colombe from working with the Hwangs' competitors, Nur-Vaccaro says.

Between the lines: The legal dispute began after the Hwangs tried to add one of La Colombe's canned lattes to their menu in South Korea.

• The Hwangs say they were told the latte wasn't part of their licensing deal.
• The couple learned from former La Colombe employees that the company was "heavily involved in establishing" Ralph's Coffee in Seoul — including creating one of the store's signature coffee blends, per the lawsuit.

What they're saying: La Colombe is "actively undercutting and sabotaging" the Hwangs as part of its push to "take over in the lucrative Korean market," Nur-Vaccaro tells Axios.

The other side: Representatives for La Colombe and Chobani didn't respond to Axios' requests for comment.

Flashback: Chobani acquired La Colombe for $900 million in 2023. Last month, Carmichael wrote in an op-ed for the Washington Post that "things are beginning to get very dark" for coffee roasters because of the Trump administration's tariffs on imports.

• Carmichael announced last year that he's developing a new venture around sodas packed with vitamins and antioxidants.

Share this story

The United Club at Philadelphia International Airport was shut down over several health code violations.

Why it matters: The passenger lounge cannot reopen until the issues are addressed and a reinspection fee is paid, per the city's posted notice.

Driving the news: Philadelphia health inspectors cited "imminent hazards" at the United Club inside Terminal C in issuing a cease operations order during Monday's reinspection, per the report.

• Inspectors cited more than a dozen issues, including an apparent fly infestation in the men's restroom and flies observed at the bar.
• They also noted that the lounge, which is operated by Sodexo, didn't have working soap dispensers at some food prep stations.

Zoom in: The lounge cannot reopen for at least two days, per the report.

• Several of the violations were immediately corrected, inspectors wrote.

What they're saying: A United Airlines spokesperson tells Axios they're working with Sodexo to "fix the shortcomings" and are looking forward to "re-opening the club soon."

• Sodexo didn't immediately respond to Axios' request for comment.

Share this story