A recent United States lawsuit between snack giant Mondelez and discount retailer Aldi has sparked global interest, not just for its legal drama, but for the broader implications it holds for branding, packaging and fair competition. While the case is unfolding in the United States, its lessons are highly relevant to New Zealand's retail and intellectual property landscape.
Background
Mondelez, the maker of Oreos, Ritz and Chips Ahoy!, has sued Aldi in the United States Federal Court, alleging that Aldi's packaging for several of its snack products "blatantly copies" the look and feel of Mondelez's iconic brands. The lawsuit includes side-by-side comparisons showing Aldi's chocolate sandwich cookies, crackers and biscuits in packaging that closely resembles Mondelez's in colour, layout and design elements.
Mondelez claims this infringes on its trade mark rights and "trade dress" (i.e. the overall visual appearance and feel of a product's packaging), and could mislead consumers into thinking the products are affiliated. The company is seeking damages and an injunction to stop Aldi from using the disputed packaging.
This is not the first time Aldi has come under legal scrutiny for its packaging. In a 2024 Australian Court decision the retailer was found to have infringed the copyright associated with the Baby Bellies snack puffs due to the use of a cartoon owl and colour schemes closely resembling the original brand. More recently, a United Kingdom Appeals Court sided with cider producer Thatchers, concluding that Aldi's lemon cider packaging bore striking similarities to Thatchers' design.
Implications for New Zealand
New Zealand businesses - especially those in the FMCG sector - should take note. While Aldi does not currently operate in New Zealand, the case highlights a growing global tension between brand protection and private-label competition.
If Mondelez prevails, the case could set a precedent that reshapes not only packaging practices across the retail industry, but which may also prompt closer scrutiny and potential reform of how "trade dress" and brand imitation are regulated in countries like New Zealand.
It could embolden New Zealand brand owners to more actively pursue legal protection for "trade dress". While New Zealand law does not currently offer explicit "trade dress" protection, a high-profile international ruling could influence how local courts interpret "misleading conduct" under the Fair Trading Act 1986 and "passing off" under common law.
The case may also prompt policymakers and legal professionals in New Zealand to re-evaluate whether current legislation adequately protects the visual identity of brands. If "trade dress" continues to be a flashpoint overseas, there may be calls to clarify or expand New Zealand's intellectual property framework to better address packaging-based disputes.
Finally, the case underscores how packaging influences consumer perception. In New Zealand's competitive grocery sector, where shoppers often make quick decisions based on visual cues, the outcome could spark greater public awareness around brand authenticity and lookalike products. This may shift consumer expectations and demand for clearer brand differentiation.
Practical lessons and recommendations
For brand owners:
- Register your trade marks and consider design registrations for distinctive packaging.
- Monitor the market for lookalike products and act early - prevention is cheaper than litigation.
- Educate your team on the difference between inspiration and imitation.
For retailers and label producers:
- Invest in original packaging design that builds your own brand identity.
- Avoid "passing off" risks by steering clear of colour schemes, fonts, or layouts that mimic competitors.
- Consult IP experts before launching new packaging, especially if it resembles a market leader.
Need guidance navigating brand protection or packaging design? Our IP specialists can help you craft a proactive strategy, whether that is securing trade mark rights, or reviewing your packaging for potential infringement issues. We are here to ensure your brand stands out legally and commercially in a competitive retail environment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
