A Grupo Modelo spokesman said the company was disappointed with the verdict and “evaluating all options.”
Another from Constellation said the company was pleased with the verdict and remains “committed to continuing to operate in accordance with the terms of our sublicense agreement.”
A predecessor to Constellation began distributing Grupo Modelo beers, including the Corona, Bohemia and Victoria brands. The group sued Constellation in 2021, claiming that their 2020 release of Corona Hard Seltzer breached their license agreement and infringed their trademarks.
Modelo added Modelo Ranch Water to the lawsuit last year after Constellation launched the sparkling water and flavored alcoholic beverage.
Constellation argued in court that the beverages are covered by a part of its license that allows it to sell “other versions” of beer or malt beverages under the Modelo brands.
US Circuit Judge Lewis Kaplan ruled in December that the definition of the term “beer” in the contract was too ambiguous to decide the case before trial, though he said Modelo “has more dictionaries on its side in this debate.”
The Mexican company has separately sued Constellation over its Modelo Reserva beers aged in tequila and bourbon barrels, in a case that is currently in mediation.
Modelo claims that the tequila draft beers violate U.S. and Mexican laws governing the use of the word “tequila” and that the bourbon draft beers violate Constellation’s agreement to only sell “Mexican-style beers” under the name Model.