While both are Mexican beer cocktails that are refreshing and perfect for a hot day, a michelada is complex and flavorful, whereas a chelada is a simpler version of the michelada. While the two terms are sometimes used interchangeably, the difference between the chelada and a michelada is in the seasoning preparation.

“Chelada” is slang, short for the Spanish word “Michelada,” which many debate is derived from the phrase “mi chela helada”—in English, “my cold beer.” Both fall into a general category called “cerveza preparada,” or prepared beer, in which juices, sauces and spices are mixed with beer to make a beer cocktail—sacrilege ...

It's basically a premade Bud Light michelada, using Clamato concentrate. Clamato, of course, is a mixture of tomato juice and clam juice beloved in two out of three North American countries.