Nestlé USA has filed a lawsuit in the U.S. District Court for the District of New Jersey against Peru Foods alleging trademark infringement and dilution, and false designation of origin.
Nestlé USA alleges that Peru foods sell grey market panetón cakes in the U.S. without authorization.
According to the lawsuit, Nestlé USA reportedly said that Peru Foods is selling cakes manufactured by Nestlé Peru which are intended for sale only in foreign markets outside of the U.S.
Nestlé USA reportedly said that its Peruvian arm, Nestlé Peru manufactures panetón products under the D’Onofrio brand meant to be sold outside the United States but Peru Foods has allegedly been selling the D’Onofrio branded cake in the U.S. without permission.
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.
“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 authorized distributors have made in creating consumer demand for Nestlé products. Peru Food is not an owner or licensee of Nestlé trademarks in the U.S., and Nestle USA has not authorised Peru Food to sell Nestlé-trademarked products”, Nestlé USA reportedly said.
Nestlé USA reportedly said that the grey market panetón sold by Peru Food is different from the corresponding Nestlé USA panetón including differing fat and sugar content in the products although the cake is being sold under the same brand using same Nestlé trademark and having similar appearances.
Nestlé USA alleges that the grey market cake allegedly uses a colour additive which is not approved by the U.S. Food and Drug Administration which has caused serious repercussions for Nestlé USA retailers and consumers.
Nestlé has asked the court for an injunction and damages.
The Case is ongoing.
NESTLE USA, INC. v. PERU FOOD IMPORTS, INC.
|Judge:||Susan D Wigenton|
|Court:||New Jersey District Court|
|Nature of Suit:||Trademark|
|Case Filed:||October 17, 2019|