Molson Coors needs to stop comparing rivals' light beer to water, regulator says, in a win for Anheuser-Busch

• Molson Coors should no longer compare its rivals' beers to drinking water, a regulatory body says.
• The decision stems from a complaint filed by Anheuser-Busch over a 2022 Miller Lite ad.
• The ad appears to poke fun at Michelob Ultra, a 95-calorie beer made by Anheuser-Busch. 

Beverage giant Molson Coors should no longer compare its rivals' light beer to water, a national regulatory body says. 

The National Advertising Division, a program under the Better Business Bureau, issued a recommendation on Thursday that Molson Coors should no longer use the claim that "light beer shouldn't taste like water. It should taste like beer" in its ads. 

According to the NAD, tasting "like water" is an attribute that can be measured, and is "not puffery or a mere opinion." Because Molson Coors didn't submit evidence supporting its claim that any other brands' light beers "taste like water," it should discontinue its ads, the NAD says. 

The claim was brought by Molson Coors rival Anheuser-Busch, who took issue with a July 2022 ad that depicted a cyclist dousing himself with beer at the end of a ride in place of water. While the ad didn't call out a specific brand, the blue can, labeled "Extremely Light Beer," looked similar to a can of Michelob Ultra, a beer with less than 100 calories that's owned by Anheuser-Busch.

A Molson Coors spokesperson said in a statement to Insider that the company "vehemently" disagrees with the NAD's decision.

"We believe light beer should taste like beer, not water, and we are well within our right to share that belief," a spokesperson said. "We have appealed the NAD's decision and will proudly continue to make light beer that tastes like beer."

An Anheuser-Busch spokesperson told Insider that it appreciates the NAD's recommendation and that "true stewards of the beer industry should be working together to strengthen the beer category instead of resorting to misleading attacks that denigrate products enjoyed by millions of beer drinkers." 

Though the NAD's decisions aren't legally binding, most companies opt to adhere to its recommendations. The ads are referred to the Federal Trade Commission if they choose not to comply, CNN reports. 

The beer-makers, two of the world's biggest, have sparred more than once in the past. In 2019, Molson Coors sued Anheuser-Busch over an ad campaign that began airing during that year's Super Bowl. The ad highlighted the fact that Anheuser-Busch's Bud Light isn't made with corn syrup, which Molson Coors said unfairly targeted Miller Lite and Coors Light. 

Around the same time, Anheuser-Busch accused its rival of stealing its secret recipes, claiming a MillerCoors employee had obtained information on the ingredients of Bud Light and Michelob Ultra from an Anheuser-Busch staffer. The court sided with Molson Coors, but a federal appeals court later overturned the ruling in favor of Anheuser-Busch.