Grupo Modelo, the Mexican subsidiary of Budweiser, recently filed a lawsuit alleging that Constellation Brands violated its agreement by applying the Corona brand name to products other than beer.
In 2013, Budweiser sold the Modrow Group"s operations in the United States to the Constellation Group, including the Corona brand. However, Budweiser retains the right to use Corona and other Modrow Group brands in Mexico and elsewhere. Constellation Group launched the alcoholic soda CoronaHard Seltzer in February 2020. a court filing shows that recently, Modrow Group filed a lawsuit in the U.S. District Court for the Southern District of New York, in which Modrow argued that the Corona licensing agreement applied only to beer and did not include alcoholic sodas. Constellation Group said that Modrow Group's claims are unfounded, including the implication that alcoholic sodas should not be classified as beer, are also unfounded, and that they are in full compliance with the relevant terms of the agreement and will vigorously defend their rights.
Does soda with alcohol count as beer?