It’s a trick of the trade – low-cost grocers signal what national brand their store brands are meant to mimic, by making their products and packaging look as similar to the name brand as possible.
ALDI is perhaps best known for this practice – and it has the trademark infringement lawsuits to show for it. Not to be outdone, Trader Joe’s is now facing a lawsuit of its own.
The J.M. Smucker Company, maker of Uncrustables frozen sandwiches, has filed a federal lawsuit against the grocery chain over its Crustless Peanut Butter & Strawberry Jam Sandwiches, calling them “an obvious copycat.”
Uncrustables have been around for nearly three decades, and Smucker says it’s now nearly a billion-dollar brand. Success breeds imitation, so a number of competitors have stepped in. Smucker says ordinarily, it doesn’t mind. “Smucker does not take issue with others in the marketplace selling prepackaged, frozen, thaw-and-eat crustless sandwiches,” its lawsuit reads. “But it cannot allow others to use Smucker’s valuable intellectual property to make such sales.”
The lawsuit points to unique design features that Smucker says Trader Joe’s knockoff mimics far too closely. Uncrustables come in “a round pie-like shape with distinct peripheral undulated crimping,” Smucker explains, pictured on boxes as “a round crustless sandwich in whole and with a bite taken out of it showing filling on the inside.”
Trader Joe’s version does the same, Smucker argues. Even its box is in the very same shade of blue as the Uncrustables logo on Smucker’s boxes.
And should Trader Joe’s claim that no customer is actually fooled into thinking its products are actually Smucker’s, Smucker pointed to several social media posts reviewing Trader Joe’s sandwiches, in which the reviewers incorrectly speculate that the sandwiches are actually made by Smucker and are simply placed in Trader Joe’s boxes for the retailer to sell under its own label.
ALDI is perhaps best known for the practice of placing its store brand products in packaging very similar to their brand name equivalents. And several major brands have expressed their displeasure over the years, most recently in the form of a lawsuit from snack maker Mondelēz, which sued ALDI several months ago for allegedly mimicking the look of products like Oreo, Wheat Thins, Nutter Butter, Chips Ahoy!, Nilla Wafers, Ritz and Premium.
Trader Joe’s itself has faced similar complaints in years past as well. Pepperidge Farm was the most prominent plaintiff, suing Trader Joe’s back in 2015 over its Milano cookie-like product, in a case that was later settled. Other plaintiffs making similar claims in recent years include Chile Colonial, which claimed it owned the trademark for Trader Joe’s Chili Onion Crunch product, and the maker of “Carl the Snowman” hot chocolate bombs. Both of those cases also ended in out-of-court settlements.
Smucker’s lawsuit makes multiple claims, including trademark infringement, unfair competition and deceptive trade practices. The company wants Trader Joe’s to change its packaging, hand over any profits it made by selling its similar product, and pay damages, costs and fees.
ALDI, incidentally, announced last month that it would be changing the packaging of all of its store-brand products, purportedly to “make its trusted private labels even more recognizable for shoppers.” The retailer made no mention that the move might forestall any future lawsuits.
That’s a strategy that Trader Joe’s might consider. Until then, if you’re a fan of its Crustless Peanut Butter & Strawberry Jam Sandwiches – better buy them now, while they last.
Image sources: Smucker / Trader Joe’s
