Anheuser-Busch Sues Constellation Brands as It Feels the Heat From Corona Hard Seltzer

Rich Duprey, The Motley Fool
·4-min read
Anheuser-Busch Sues Constellation Brands as It Feels the Heat From Corona Hard Seltzer

Although the legal argument behind Anheuser-Busch InBev's (NYSE: BUD) new lawsuit against Constellation Brands (NYSE: STZ) hinges on whether hard seltzer is technically "beer," the stakes are actually much higher. While actual beer sales continue to decline, hard seltzer remains one of the hottest adult beverages on the market, growing at triple-digit rates. Anheuser-Busch's Grupo Modelo contends Constellation Brands violated the licensing agreement for Corona that was signed as part of the mega brewer's acquisition of the Mexican brewery in 2013 to satisfy antitrust concerns.