Thatchers Cider has tasted victory in the Court of Appeal over its long-running trademark infringement case against supermarket giant Aldi.
Somerset-based Thatchers brought the claim against an Aldi branded cider, named Taurus, that appeared on shelves approximately two years after Thatchers had enjoyed significant success with its own Cloudy Lemon Cider.
In a January 2024 ruling, Judge Melissa Clarke concluded there was a low degree of similarity between the products and no likelihood of confusion for consumers.
However, following an appeal hearing presided over by Lord Justice Arnold, the Court of Appeal has overturned the earlier decision, ruling Aldi took unfair advantage of the Thatcher’s trademark.
Lord Justice Arnold said: “The inescapable conclusion is that Aldi intended the sign to remind consumers of the trademark.
“This can only have been in order to convey the message that the Aldi product was like the Thatchers product, only cheaper.
“To that extent, Aldi intended to take advantage of the reputation of the trademark in order to assist it to sell the Aldi product.”
All three Court of Appeal judges – Lord Justice Arnold, Lord Justice Phillips and Lady Justice Falk – agreed on the verdict.
Martin Thatcher, who is Thatchers’ Managing Director and great-grandson of founder, William Thatcher, said: “We couldn’t be happier with this decision, which vindicates our position that Aldi had taken unfair advantage of the hard work we put in to our cider and brands. This is a victory not just for our family business, but for all businesses whose innovation is stifled by copycats. We’re thrilled the Court of Appeal got to the core of the issue and cleared up any cloudy judgment.”
Mary Bagnall, Head of Intellectual Property, Charles Russell Speechlys, described the judgment as a “welcome endorsement” of the use of registered trademarks to protect against unfair competition from discounters.
“It’s clear that copycat products can gain a competitive advantage by replicating the appearance of already popular and iconic brands, and Aldi is no stranger to the consequences of launching lookalike products, having been successfully sued by Marks & Spencer over lookalike glitter light up gin bottles.”
She added: “Consumers are accustomed to seeing own label versions of popular products, and that is all part of healthy competition and consumer choice, However, this decision should act as a warning to discount supermarkets, who are looking to launch competing products to established brands, that they cannot expect to adopt lookalike packaging which rides on the coattails of other companies’ marketing and advertising efforts without significant repercussions.”
Aldi said it was “disappointed” that the Court of Appeal had disagreed with the High Court decision, adding it intends to appeal.
A spokesman said: “Aldi offers exclusive brands as low-price alternatives to more expensive branded products. The High Court was clear that Aldi customers know what they are buying when they shop with us.”
