Diageos Crown Royal Canadian whisky

Diageo's Crown Royal Canadian whisky

Diageo has claimed victory in a legal battle with Mexcor over its Crown Royal Canadian whisky brand.

The group's US unit launched a lawsuit last year accusing Mexcor of trying to confuse consumers by packaging its Canadian whisky products in "copycat drawstring bags". Diageo also alleged that, by using 'Crown' or 'Crown Club' on its brands, the Texas firm was attempting to mislead people.

Diageo said that, in a verdict reached this week in a federal court in Texas, a jury agreed with its claims and awarded the company damages.

Mexcor will also have to change the name and packaging of some of its whisky products, according to Diageo.

Nicole D’Amato, the company's North America director & senior counsel for intellectual property, whiskeys, said: “We are pleased that the jury agreed with us that Mexcor has been confusing our consumers and diluting the strength of our Crown Royal brand, and that they will now have to change their name and packaging.

“We are also gratified that the jury has backed up their verdict by awarding damages to Diageo."

Mexcor has yet to respond to a request for comment. 

According to the website Law360, Mexcor had argued that it had been using the Crown Club name since 2008, but Diageo had never previously complained.

The Texas firm also reportedly argued that Diageo had not given enough evidence of the familiarity of its trademark among the general consuming public to back up its dilution claim.