Anheuser-Busch Settles ‘Copycat’ Trademark Lawsuit Filed by Surfside Iced Tea

(Photos: Stateside, AB InBev)

Brewing giant Anheuser-Busch InBev has reached an agreement with Stateside Brands that settles a nearly year-long lawsuit waged in the convenience store booze aisle.

The suit was filed last October by Stateside, the maker of the wildly popular canned cocktail brand Surfside Iced Teas and Lemonades. The Philadelphia-based company accused AB InBev of copying its packaging and design elements with the competing launch of Skimmers, a vodka iced tea that debuted shortly after Surfside was announced as one of the fastest-growing brands in the industry.

According to BrewBound, Stateside and AB InBev have agreed to dismiss the case without prejudice, allowing both brands to remain on shelves without any alterations to their trade dress.

The terms of the agreement stipulate that the matter cannot be brought up in court again, and each party will pay for its own attorney’s fees.

In its initial complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Stateside argued that Skimmers copied three distinctive features of Surfside: A stylized gradient design on the bottom of the can, a white background overlaid with a sun logo and a colored rim that matches that color scheme from the bottom.

“Anheuser-Busch could have selected from a vast universe of design elements to create a can that stood on its own,” the filing reads. “Instead, it opted to mimic Stateside and freeride off its popular and successful Surfside design, product, reputation, and goodwill to gain an unfair marketplace boost—at the expense of both Stateside and consumers alike.”

Anheuser-Busch was of a different opinion. In a response to Stateside’s complaint, the company argued that the disputed design elements were a “formulation [that] simply follows ‘industry best practices’ that pre-dated Stateside.” Lawyers noted that Stateside chose not to file a lawsuit against Sun Cruiser, Boston Beer Company’s competing hard iced tea launch, and one that — per AB InBev — “includes in its can design every element of Stateside’s asserted dress.”

Had Anheuser-Busch been found in violation of trademark law, Stateside requested damages of at least $75,000.

Surfside is one of the fastest-rising pre-mixed cocktails in the United States, reportedly witnessing revenue growth of over 360% in 2024 alone. The beverage, produced by Stateside Brands in Philadelphia, Pennsylvania, is currently available in a variety of vodka-based flavors including Lemonade, Iced Tea and Green Tea. The drink’s popularity can be partly credited to savvy partnerships in the baseball world, including a handful of limited-edition cans launched in collaboration with the Los Angeles Dodgers and the San Francisco Giants.

Stateside was founded in 2015 by Matt Quigley, Bryan Quigley, Clement Pappas and Zach Pappas, two sets of brothers who set out to create a “better-for-you” alternative to competitors like Mike’s Hard Lemonade. In addition to Surfside, the distillery also offers stand-alone vodka and bourbon offerings.

Anheuser-Busch, meanwhile, is the largest brewer in the world, responsible for myriad best-sellers including Michelob Ultra, Bud Light, Stella Artois and Busch Light.