A lawsuit brought by US-based brewer Molson Coors Brewing claiming that Puerto Rican tax policy favours local brewers has been dismissed by a Puerto Rican court.

The exemption in the country's tax law stipulates that companies which produce more than 31m gallons are taxed at US$4.05 per gallon, whereas small local brewing companies pay just $2.99 per gallon.

"We are disappointed in the court's granting of the motion to dismiss," a spokesperson for the Colorado-based company told just-drinks. "This disparity in the excise taxes artificially impacts prices, giving the local beer a significant competitive advantage."

During the ruling, the judge stated that such a complaint cannot be presented again in federal court.

Meanwhile, Puerto Rico Treasury Secretary Juan Carlos Mendez said: "This was frivolous from the beginning."

The Coors spokesperson added: "The court did not decide that this statute is valid, or that Coors is not right in its claim, but merely that the federal court could not hear and determine the merits of our case. We are considering whether we will exercise our right to appeal this decision to the First Circuit Court of Appeals."