Beer Maker Sued For Using Corona Name on This Beverage
Anheuser-Busch InBev has filed a lawsuit against Constellation Brands for using the Corona name on its line of hard seltzers.
Constellation, which manufactures Corona in the U.S., violated the terms of a deal governing the use of the brand's name by featuring it on a non-beer product, the lawsuit alleges. Group Modelo claimed that it had filed the legal challenge after attempts to resolve the issue with Constellation directly failed, according to Reuters. Constellation, meanwhile, maintained that it was "fully and completely" complying with the licensing agreement. (Related: Grocery Shortages To Expect in 2021, According to Experts.)
When Anheuser-Busch InBev bought out Group Modelo in 2013, it sold the rights to Corona in the U.S. in an agreement with antitrust regulators. AB InBev retains the Corona, Modelo, and other brands in Mexico and across the world.
After Constellation released the Corona Hard Seltzer in February 2020, its popularity immediately began to rise. In October, the company said the product accounted for 6% of the seltzer market in the U.S.
Anheuser-Busch recently announced that Michelob Ultra Is Debuting a First-of-Its-Kind Hard Seltzer. However, the company was ordered to stop marketing the drink as the first and only certified organic hard seltzer on the market after an Oregon brewery challenged the claim in court.
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