Brick Brewing has agreed to change the label of its Red Baron beer, following a lawsuit filed against the firm by Labatt Brewing Co.

Brick Brewing said last month that fellow Canada-based brewer Labatt was taking it to Canada's Federal Court, alleging that Red Baron looked too similar to Labatt's Brava brand.

Under a settlement deal announced yesterday (11 June), Brick said that it will change Red Baron's label and secondary packaging, effective "in the near future".

Charlie Angelakos, Vice President of Corporate Affairs for Labatt said: "We are pleased to be able to reach this settlement amicably with Brick. We make a significant investment in our brands in order to connect with consumers and the settlement will maintain Brava's unique graphic character."

Brick president and CEO George Croft said: "We will use the opportunity presented by this settlement to introduce a new look for Red Baron. We too are satisfied that an agreement was reached quickly and without the need to resort to a court decision."

Labatt is a division of Anheuser-Busch InBev.

Separately, Brick Brewing has filed a lawsuit against its founder, James Brickman, alleging financial wrongdoing against  the company.