Constellation asserted that Grupo Modelo’s claims were unfounded and that it had fully complied with the terms of the sublicense.
When AB InBev took full control of the Mexican company in 2013, it agreed with US antitrust regulators to sell the acquired firm’s business in that country to Constellation. The world’s largest brewery retained the rights to the Modelo brands.
The lawsuit, confirmed by AB InBev, indicates that in June Grupo Modelo notified Constellation of the problem, which had refused to stop selling the product. According to the Belgian giant, Mexico’s Tequila Regulatory Council (CRT) also demanded that the US company stop using the word tequila in marketing.
In February, Grupo Modelo filed a legal challenge in the same court over Constellation’s Corona Hard Seltzer product, an alcohol-flavored sparkling water, one of several soft drinks that have become very popular in the United States.
AB InBev’s subsidiary said the 2013 deal only allowed Constellation to apply the Corona brand to beer, and the US company responded that the Mexican firm’s claims were unfounded and an attempt to slow down a strong competitor.