AB InBev loses jury trial

 

A federal jury ruled that Constellation Brands can continue to sell Corona and Modelo hard seltzers in the U.S.   Anheuser-Busch InBev and its Mexican subsidiary Grupo Modelo sued Constellation in 2021 to stop sales of the hard seltzers. Constellation has been licensed to sell Corona and Modelo beers in the U.S. since 2013 under an agreement with antitrust regulators after AB InBev acquired Grupo Modelo. The agreement defined "beer" as "ale, porter, stout, malt beverages, and any other versions or combinations of the foregoing, including nonalcoholic versions." Grupo Modelo argued the seltzers didn't fall under the definition of beer and sought to halt sales and force Constellation to pay damages. Constellation claimed that its hard seltzers fall under the "malt beverage" category and that the licensing agreement gives it the right to develop and market Corona beverages. The case hinged on the definition of the word "beer."