I think in the 1970's, Kentucky's Ezra Brooks distilleries began to
market its bourbon in Kachina Dolls/decanters in Arizona. This upset
the hopi indians who's religion is based around Kachina Dolls.  My
question is was Ezra Brooks told to stop? What action was taken
against them. What was the publics reaction? Is there any marketing
info from Ezra Brooks?

Your phrases "told to stop" and "action... taken against them" imply
that you believe it to be illegal to do things that offend others'
religious sensibilities. Fortunately (in my view), in the United
States this is not the case. While there may be economic consequences
for a merchant in a situation like this one, I cannot imagine that
legal processes would be involved.

You'll find photos of the Ezra Brooks Kachina decanters here:

http://www.jimbeamclub.com/pictorials/brooks/indian/