A judge has ruled in favor of Casa Azul, the tequila company founded by beverage innovator Lance Collins, in a trademark trial against long standing tequila brand Clase Azul.
U.S. District Judge Lee H. Rosenthal yesterday in Houston, Texas denied Casa Tradicion, the maker of Clase Azul, the motion for a permanent injunction following a bench trial.
The suit was initially filed in September 2022, after Casa Azul launched a canned tequila soda that summer. Clase Azul filed a trademark infringement action in federal court arguing that the new brand caused undue confusion with its flagship tequila, a high-end brand sold in a handmade ceramic bottle which has retained its trademark since 2008.
Following an unsuccessful effort at mediation, the case moved forward with full discovery with each side filing several pre-trial motions. On November 3 2023, the judge granted Casa Azul Spirits’ motion to dismiss Clase Azul’s claims for monetary relief, and struck its demand for a jury. The rulings narrowed the issues remaining for trial and set up a bench trial this year.
The court found and concluded that because of the dissimilarity between the two brands, as well as other evidence, Clase Azul failed to establish a likelihood of confusion and failed to establish trademark infringement, unfair competition, or trademark dilution.
“We are grateful that the judge so clearly decided in Casa Azul’s favor and this outcome reaffirms our confidence in the distinctiveness of Casa Azul’s brand name, world class products and our commitment to upholding its integrity with USDA Certified Organic Tequila,” said Collins in a statement.
Since releasing the tequila soda, Casa Azul has turned its attention towards its high end tequila of the same name and has recruited a roster of celebrity investors. Those include Mexican-born actress Eiza González, football player Travis Kelce, U.S. Women’s Open Champion Michelle Wie West, among others.
Casa Azul was the first alcohol-based release from a team of beverage industry veterans whose latest innovations have made their marks in the wellness and energy drink categories. NOS Energy Drink, part of FUZE, and BodyArmor Super Drinks sold to the Coca-Cola Company in 2007 and 2021 respectively, with BodyArmor, which Collins co-founded with Mike Repole, ranking as the beverage giant’s largest acquisition at the time at $5.6 billion. Core Hydration was acquired by Keurig Dr. Pepper in 2018.
Clase Azul, on the other hand, made its mark on high-end tequila when it launched in 1997, helping to spearhead the segment. The brand has several tequila and mezcal expressions, ranging in price from $150 to $2,000 and founder Arturo Lomeli’s unique bottle has since found a spot on shelves in over 80 countries.