Central Standard Craft Distillery Hit by Sazerac With TM Suit Over Coffee-Flavored Vodka

[Erik Owens]

Source: https://www.law360.com/

February 14, 2024

Alcoholic spirits giant Sazerac Brands LLC hit a Milwaukee-based liquor company with a trademark infringement lawsuit over the branding of coffee-flavored vodka, saying the liquor was sold under its "Grind" mark without authorization.

In Friday's complaint, Sazerac alleged that Wisconsin's Central Standard is selling its coffee vodka under the name "Daily Grind," which infringes Sazerac's registered "Grind" mark, under which it sells its espresso-infused rum.

"Central Standard's Daily Grind is likely to cause massive confusion in the marketplace at every link in the distribution chain from distributors, to retailers, to consumers," the liquor company said in its suit.

Sazerac, which is behind brands such as Southern Comfort and Fireball, told the court that it had been selling its liquor under the "Grind" mark since at least 2010, and has registered the trademark with the U.S. Patent and Trademark office covering alcoholic beverages.

Central Standard knew that, Sazerac said, when it began selling its own branded liquor under the "Daily Grind" name, because Sazerac's "Grind" rum is branded with a trademark registration symbol, and later, Sazerac notified Central Standard that its coffee-flavored vodka was infringing its mark.

Both products are distilled spirits, Sazerac said, and both are labeled with marks that emphasize the capitalized mark "Grind."

To add to the potential for confusion, Sazerac pointed out that both the "Daily Grind" vodka and the "Grind" rum are sold at some of the same third-party stores, bars and grocery stores in Wisconsin, and both have been marketed to consumers to create similar drinks, such as espresso martinis.

Sazerac is asking the Wisconsin federal court to find that Central Standard violated both federal and state trademark infringement and unfair competition laws and award it actual damages and Central Standard's profits from the infringement.

Sazerac is also looking for an injunction blocking Central Standard from further use of the mark, and for all "Daily Grind" products to be taken off shelves and disposed of.

A representative for Central Standard and counsel for Sazerac did not immediately respond to a request for comment Monday.

Sazerac is represented by J. Michael Keyes and Connor J. Hansen of Dorsey & Whitney LLP.

Counsel information for Central Standard was not immediately available Monday.

The case is Sazerac Brands LLC v. Central Standard LLC, case number 2:24-cv-00185, in the U.S. District Court for the Eastern District of Wisconsin.