In the short term there would be no name change because labelling had to be approved by regulators.
But public health advocate Shane Bradbrook believes the beer should not be sold.
In 2006 he forced an apology and backdown from tobacco giant Philip Morris for producing a "Maori Mix" line of cigarettes.
"Essentially, it's about exploitation and in terms of our Maori king, in effect it's misappropriating his mana."
Placing moko on a beer bottle was also "culturally inappropriate".
Mr Bradbrook wanted it withdrawn from sale.
Tainui executive chairman Tuku Morgan said he was deeply offended and would be contacting Funkwerks to establish a "dialogue".
Another Kingitanga follower who heads a social service provider for Tainui people, Hori Awa, said he was disgusted with the product.