The ad, created by the Leith Agency, presents two men singing about the beer in a Jamaican accent and performing goofy dance moves, including martial arts poses, and pretending to be a bear.
The lyrics include: "Hear me now! You taste so light just like an eagle wing, up high in the Rockies gonna do ma ting. You taste so light just like the arctic air, ice cold from the land of the grizzly bear."
The Advertising Standards Authority's attention was drawn to the ad by one person who complained the accent and dance moves of the men were offensive and racist.
Coors defended the ad against both counts, saying the ad was an "affectionate spoof of the ragga genre" and that nothing in the ad was associated with youth culture.
It said that the humour in the ad was similar to the "geek-chic" comedy of acts and shows such as 'The Mighty Boosh', 'Da Ali G Show' and 'Reeves and Mortimer'. It argued that none of those programmes were targeted at or appealed strongly to people under the age of 18.
It also said it carried out extensive consumer research before broadcasting the ad and was satisfied there was no risk of it causing offence.
While the ASA disagreed with the complaint it decided to ban the ad on the grounds that its humour was likely to appeal strongly to adolescents. The humour came not just from the singing and dancing but from a fake moose and a woman hitting the men with a pillow.
Although Clearcast had cleared the ad for broadcast, saying it was not likely to appeal to under-18s, the ASA cited BCAP guidance notes stating that advertisers should avoid themes that are associated with immature, adolescent or childish behaviour or practical jokes.
The ASA said: "We considered that the humour in the ad, particularly the exaggerated dance moves, the bear impression, fake moose, plastic keyboard and the woman hitting the men with a pillow, was juvenile and used themes that were likely to appeal strongly to adolescents, and that the characters wacky, silly behaviour would appeal strongly to young peoples sense of humour. We concluded that the ad breached the Code."
The ad was slated on with one commenter saying: "Ok, so that was a load of rubbish. Though its something I would laugh at when drunk.....very drunk."
Another picked up on the alleged racist tones, saying: "After the Mastication for the Nation furore, I would have thought creatives would have steered clear of West Indian accents for a while...".
In 2007 an ad for complaints and was banned by the ASA on the grounds it could be seen as belittling to black or Caribbean people.