Nestlé Loses Fight With Impossible Over Meatless Burger Branding
June 01 2020 - 5:52AM
Dow Jones News
By Saabira Chaudhuri
Nestlé SA must stop branding its plant-based burger "Incredible"
after a European court ruled the language infringed on Impossible
Foods Inc.'s trademarks and could confuse consumers.
The order by the District Court of The Hague in the Netherlands
means Nestlé has to change the name of its Garden Gourmet
Incredible Burger throughout the European Union. Nestlé said it
would rebrand the product as Sensational across Europe, while also
appealing the decision.
The ruling is a setback for the world's biggest packaged-foods
maker, which has sought growth in the burgeoning market for
plant-based products at a time when many other packaged foods have
struggled as consumers reach for cheaper alternatives or higher-end
fresh food.
"We are disappointed by this provisional ruling as it is our
belief that anyone should be able to use descriptive terms such as
'incredible' that explain the qualities of a product," a Nestlé
spokesman said.
Nestlé's Incredible Burger, made from soy and wheat protein,
launched in April last year and is sold in 15 countries in the
region. Outside Europe, the burger is sold in Australia, although
Nestlé said it didn't yet know if the name would be changed there.
Nestlé also sells a different plant-based burger in the U.S.,
branded Awesome Burger and made from pea protein.
Impossible, founded in 2011, doesn't currently sell in Europe
but said it is in the process of getting approval to do so. The
U.S. company sought an injunction against Nestlé's product,
claiming the Swiss giant was trying to impede its entry into the
European market by using a similar name.
The legal spat underscores the race for dominance in the
fast-growing but increasingly crowded meat-free market, where
established packaged foods companies are jockeying with startups.
Plant-based meat sales in U.S. retail stores totaled a little over
$1 billion for the 52 weeks ended Jan. 25, according to research
firm Nielsen, up 14% from the prior year. Sales of traditional meat
grew 0.8% to $96 billion over that period.
Impossible, which launched its burger in 2016, recently slashed
prices on its products to be more competitive as companies such as
Smithfield Foods Inc. and Cargill Inc. plot their own plant-based
offerings.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
(END) Dow Jones Newswires
June 01, 2020 05:37 ET (09:37 GMT)
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