Outdoor apparel company Patagonia is suing Anheuser-Busch InBev for copying the logo and marketing strategies for its recently launcher beer brand.
In 2016 Patagonia launched a new beer brand called Long Root, and the lawsuit claims that one representative from AB InBev had reached out to the company about the special grain used in the beer. AB InBev only recently began testing its Patagonia brand stateside, after years of success in Argentina.
According to the Ventura, California-based company claims that AB InBev has taken to copying Patagonia brand logo and launched products at ski resorts where Patagonia ski apparel is popular, to confuse consumers.
The lawsuit also claims that AB InBev’s move to plant one tree for every beer sold is to confuse consumers as Patagonia has a reputation of being environment-friendly.
So Patagonia is now asking a California based federal court to recognize AB InBev’s infringements and trademark dilution. It is also asking AB InBev to return any money earned through the sale of Patagonia beer.
This is the second time in less than a month that AB InBev has been accused of confusing consumers and infringing upon trademarks.
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The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.471) is normal, around the industry mean (3.776). P/E Ratio (23.500) is within average values for comparable stocks, (28.896). BUD's Projected Growth (PEG Ratio) (0.970) is slightly lower than the industry average of (2.099). Dividend Yield (0.014) settles around the average of (0.024) among similar stocks. P/S Ratio (2.114) is also within normal values, averaging (7.800).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BUD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BUD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a holding company whose subsidiaries manufactures and distributes alcoholic and non-alcoholic beverages
Industry BeveragesAlcoholic