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16 July 2019TrademarksRory O'Neill

Red Bull targets ‘grey market’ drinks sellers

Red Bull is suing a New Jersey-based drinks supplier for the unauthorised sale of so-called “grey market”’ products, which were not intended for sale or consumption in the US.

In the complaint, filed at the US District Court for the District of New Jersey, Red Bull alleged that SS Beverage was selling Red Bull energy drinks intended for the South African market in the US.

Red Bull manufactures different versions of its products for various jurisdictions which take into account “material differences in terms of language, government regulations, and units of measurement, among other things”.

These “grey market” products are not intended or authorised for sale in the US, Red Bull said.

In 2010, the US International Trade Commission (ITC) issued a ban on the import of such products for sale and consumption inside the US, following a complaint from Red Bull.

Red Bull has actively pursued the sellers of such products in the courts.

The latest complaint cited several previous litigations against the sellers of unauthorised grey market products, including a 2009 case which saw the drinks maker awarded $2.1 million.

According to Red Bull, the sale of grey market products in the US is illegal and presents a number of problems.

The nutritional information on the packaging is not compliant with US Food and Drug Administration regulations, and the products do not carry a tracking number should they need to be recalled, the complaint said.

The drinks also display volume and nutrition information using the metric system of measurement, which Red Bull said US customers would be unfamiliar with.

Red Bull is seeking a permanent injunction preventing the sale of the grey market products within the US, as well as an award of all resulting profits made by SS Beverage.

Red Bull also asked the court to order the destruction of all the grey market drinks.

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