Tabasco maker sues Stoli over spicy vodka launch

Core Viewpoint - McIlhenny Company, the maker of Tabasco, is suing Stoli Vodka for allegedly using similar packaging for its new spicy vodka, which could confuse consumers, especially as Tabasco is launching a similar product in collaboration with Absolut [1][4]. Group 1: Lawsuit Details - McIlhenny claims that discussions for a collaboration on a spicy vodka with Stoli were terminated, leading Stoli to independently launch Halapeño Pepper Vodka [2]. - The lawsuit alleges that Stoli's product violates Tabasco's trade dress rights by using the brand's signature red and green colors and design elements proposed during collaboration talks [3]. - McIlhenny is seeking a preliminary injunction to prevent Stoli from using the disputed bottle design until the lawsuit is resolved [5]. Group 2: Market Context - Both Stoli and Absolut are facing challenges due to declining alcohol consumption but are looking to capitalize on the growing consumer interest in spicy flavors in alcoholic beverages [6]. - Sales of spicy vodka are projected to increase by 27% by 2029, indicating a potential market opportunity for both companies [6].