AB InBev has lost a court case after it sued Constellation Brands over their sales of Corona Hard Seltzer and Modelo Ranch Water in the US.

A Manhattan jury found that Constellation had not violated its US distribution agreement with AB InBev by selling the hard seltzers under the Corona and Modelo brands.

AB InBev and its Mexican subsidiary, Grupo Modelo, had sued Constellation in 2021 in a bid to force it to stop selling the beverages.

Constellation has been licensed to sell Corona and Modelo beers in the US since 2013 and under that agreement “beer” is defined as “ale, porter, stout, malt beverages and any other versions or combinations of the foregoing, including nonalcoholic versions.”

The case hinged on the definition of “beer” and the jury sided with Constellation’s argument that its license to distribute beer bearing Modelo’s brand names also allows it to sell alcoholic drinks like Corona Hard Seltzer and Modelo Ranch Water.