Tabasco maker McIlhenny Company is suing Stoli Vodka, claiming the alcohol company's new spicy vodka uses packaging similar to that of the iconic hot sauce brand. The lawsuit comes as Tabasco rolls out a similar product in partnership with Absolut.
Stoli and McIlhenny were in talks to collaborate on a spicy vodka in late 2024, McIlhenny claimed in the lawsuit, but the hot sauce maker “ultimately decided to go in a different direction and terminated discussions.” Stoli moved forward with a spicy vodka on its own, launching Halapeño Pepper Vodka this year.
McIlhenny claims that Stoli's new launch violated Tabasco's trade dress rights by using the red and green colors associated with the hot sauce brand. Attorneys for McIlhenny say that Stoli’s spicy vodka uses the design they proposed to McIlhenny for their co-branded product, just without the Tabasco name.
The lawsuit claims the similarity will create consumer confusion. McIlenny just announced a collaboration between Tabasco and Absolut on a spicy vodka that also uses the hot sauce brand's flagship color scheme.
The initial complaint was filed on Jan. 16 as part of Stoli Group USA’s bankruptcy proceedings. Stoli Group USA and Kentucky Owl filed for bankruptcy protection in 2024, and Stoli’s jalapeño vodka was the company’s first new product launch since proceedings began.
Now that Tabasco's spicy vodka collaboration has been announced, McIlhenny is asking a Texas judge to stop Stoli from using the bottle design in question until the lawsuit heads to trial, according to a request for a preliminary injunction filed Thursday.
A Stoli spokesperson didn’t immediately respond to Food Dive’s request for comment.
While both Stoli and Ricard Pernod-owned Absolut have been impacted by waning alcohol consumption, both appeared poised to tap into increased consumer interest in spicy flavors, particularly in alcohol. Sales of spicy vodka are expected to increase 27% by 2029, according to Datassentials data cited by Absolut.
