This week’s BL Business Branding Newsletter turns up the heat on a spirits industry showdown. Tabasco’s parent company, McIlhenny Co., has filed a trademark infringement lawsuit against Stoli Group and subsidiary, Louisiana Spirits, claiming the company’s new hot pepper-flavored vodka borrows a little too much from the iconic look of the world-famous hot sauce bottle.
In the competitive beverage world, branding is everything. Distinctive packaging and “trade dress” — the overall visual appearance of a product — often become just as recognizable as the beverage itself. But what happens when a new release looks so similar that consumers might think the two brands are related? That’s exactly the intellectual property issue now simmering between Tabasco and Stoli.
According to a court complaint filed on January 16th, Stoli first approached Tabasco in 2024 to propose a co-branded spicy vodka using both companies’ trademarks. Tabasco declined the collaboration. Then, in December 2025, Stoli announced the launch of a jalapeño pepper-flavored vodka packaged in a bottle that allegedly mirrors Tabasco’s signature trade dress, including its distinctive color scheme and label layout. McIlhenny Company argues that, after being told “no,” Stoli still moved forward with a product design that closely resembled the co-branded mock-ups presented during partnership discussions, creating a likelihood of consumer confusion about Tabasco’s involvement with the spicy vodka, thus raising an intellectual property issue.
The lawsuit includes side-by-side comparisons of Tabasco’s classic bottle, with its recognizable red cap and green neck label, alongside Stoli’s new pepper vodka packaging. McIlhenny believes that the visual similarities could dilute the distinctiveness of Tabasco’s famous trade dress and mislead customers into believing the vodka is affiliated with or endorsed by the hot sauce brand. Tabasco is seeking to block Stoli from using the allegedly infringing packaging and is pursuing damages, including profits tied to the vodka’s sales.
Adding another twist, Tabasco has its own pepper sauce vodka in the works through a partnership with Absolut, a competitor of Stoli. McIlhenny argues that allowing a “lookalike” product to remain on the market would undercut the exclusivity and brand recognition of its upcoming collaboration, further intensifying the dispute and alleged harm.
What Can Businesses Learn From This?
This spicy dispute is a clear reminder that trade dress protection extends well beyond logos and names to the full visual presentation of a product. Even when a partnership falls through, companies must tread carefully to avoid designs that could be perceived as echoing or leveraging another brand’s signature look. Color schemes, label placement, and packaging shapes can all raise red flags if they create a similar overall impression.
For businesses developing new products, especially in crowded markets, or protecting their brands already on the market, conducting thorough research on trademarks and trade dress is essential. It’s not just about avoiding identical marks; it’s about ensuring your branding is distinct enough to stand on its own shelf without causing confusion.
Have questions about how to protect and elevate your company’s brand? Contact our BL Trademark Team by reaching out to Seth Berenzweig at sberenzweig@berenzweiglaw.com.