Discount grocery chain Aldi UK just lost its court battle against cider producers Thatchers. The producers alleged that Aldi was shamelessly imitating the flavor and look of their drink, and they won the lawsuit. This case fits into Aldi’s long history of trademark disputes, but should cause concern about Aldi’s business practices.
Today’s spillover conflict with Thatchers is not an outlier. In mid-May, Mondelēz International, the owner of your favorite snack brands, from Wheat Thins to Nutter Butter and Chips Ahoy!, went to court. In response, they filed a lawsuit against Aldi. Mondelēz alleged that Aldi was going to great lengths to copy the packaging of its famous brands on private label products. Consumers are being misled by this similarity.
In their complaint, Mondelēz alleges that they contacted Aldi on numerous occasions about what they alleged to be confusingly similar packaging. The company expressed concerns that Aldi’s business model relies heavily on “low-priced private label products that resemble the look and feel of well-known brands.” This tactic purportedly enables Aldi to “mislead” consumers and “piggyback on the attraction, fame and prestige” of well-known brands.
A spokesperson for Aldi UK addressed the situation, stating that the two companies are “under the same ownership but operate as completely separate businesses.” That distinction might do little to soothe the cares from behemoths such as Mondelēz, which focus on the danger of imitation in the broadest sense.
With over 2,500 Aldi shops across the United States, the impact of these legal battles could extend beyond individual cases. As the supermarket chain continues to operate within a competitive retail market, it may face increased scrutiny regarding its product offerings and branding strategies.