Nestlé targets Peru Foods over grey market panetón cake
Nestlé USA has taken legal action against Peru Foods, a company which Nestlé has accused of selling grey market panetón cake in the US without authorisation.
The complaint, filed Thursday, October 17 at the US District Court for the District of New Jersey, alleged trademark infringement and dilution, and false designation of origin.
According to Nestlé USA, food retailer Peru Foods is selling cakes manufactured by Nestlé Peru which are intended for sale only in foreign markets outside of the US.
Panetón, widely known as panettone, is a sweet bread or cake of Italian origin that often contains dried or candied fruit and is a popular product within the Peruvian community.
In its filing, Nestlé USA said its Peruvian arm Nestlé Peru manufactures panetón products under the D’Onofrio brand. But, Peru Foods has allegedly been selling the D’Onofrio branded cake in the US.
“Peru Food is a consummate ‘free rider’, unfairly profiting off of the value of Nestlé’s trademarks and the investment that Nestlé USA and its authorised distributors have made in creating consumer demand for Nestlé products,” the complaint said.
It added: “Peru Food is not an owner or licensee of Nestlé trademarks in the US, and Nestle USA has not authorised Peru Food to sell Nestlé-trademarked products.”
Despite being sold under the same brand, using the same Nestlé trademark and having similar appearances, the grey market panetón sold by Peru Food is materially different from the corresponding Nestlé USA panetón.
This includes differing fat and sugar content in the products, which Nestlé said can have “serious repercussions for Nestlé USA retailers and consumers”. Additionally, the grey market cake allegedly uses a colour additive which is not approved by the US Food and Drug Administration.
Nestlé has asked the court for an injunction and damages.
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