In this Disney dystopia, Snow White has been renamed "Ho White", while the loveable dwarves Sleepy, Happy and Doc are rebranded Filthy, Smarmy and Randy - supposedly to represent different types of drinkers.
Campaign creators The Foundry claimed the idea was to convince Australian drinkers that the fruit-flavoured beer was "anything but sweet".
However, the advertisement has reportedly angered Disney, the entertainment giant which licenses Snow White.
The Foundry said it had had "a little bit of contact" with Disney over the issue, according to Sydney's Daily Telegraph newspaper.
The Foundry's website had featured pictures of "Ho White" but links to the campaign appeared to have been disabled and the campaign's official website, anythingbutsweet.com, could not be accessed.
Australia's Food Week website speculated that this may be due to a copyright infringement.
Disney, which released the famous animated Snow White feature in 1937, was not immediately available for comment.
However, it is unlikely that the company, which runs the family-friendly Disney theme parks and is known for its cartoon feature films aimed at children, would agree to Snow White's image being used to sell beer.