Remy Cointreau has resolved a trademark lawsuit with Canadian cannabis company Canopy Growth over the naming of its Quatreau cannabidiol (CBD) infused sparkling water.

Cointreau Corp. (the French-headquartered spirits group’s US division) and Canopy agreed to ask the court to end the case based on a settlement agreement, according to a filing in New York federal court. The case was subsequently dismissed on Monday (27 June).

Remy Cointreau initially sued Canopy last year, alleging the Canadian firm’s CBD-infused sparkling water infringed upon and diluted its trademarks.

In the complaint, Remy Cointreau added the products’ similar names and the fact they were likely to be sold through similar trade channels was likely to create consumer confusion.

Quatreau – (pronounced Kwa-tro) is a line of low-calorie, CBD-infused sparkling waters and was initially launched by Canopy in the US in March 2021. Cointreau, meanwhile, has been sold in the country since 1885, according to Remy Cointreau.

A Cointreau spokesperson confirmed to Reuters that a settlement had been reached, but declined to comment further. Neither party responded immediately to Just Drinks’ requests for comment.

Last month, Canopy booked a 25% decline in sales in its latest full quarter. The company, in which Constellation Brands has a 38% investment, said sales for the three months to 31 March – the final quarter of its financial year – stood at CAD111.8m (then US$88.4), down from CAD148m in the same period the year previous.

In April, Canopy laid off 245 people, reducing its workforce by approximately 8%, citing the need to cut operational costs and increase profitability. The company had initially projected becoming profitable later this year but has now pushed that target to 2024.

US spirits consumers state their future preferences. Any surprises?