Bega Cheese suppliers and shareholders welcome news over Kraft court victory

The High Court of Australia has ended a three-year dispute between Kraft and Bega Cheese over iconic, yellow labelling.

Bega Cheese executive chairman Barry Irvin has welcomed the High Court of Australia’s decision. Picture: Stuart McEvoy

The High Court of Australia has ended a three-year dispute between two of food’s heavyweights, leaving south coast company Bega Cheese, its shareholders and suppliers all smiles.

On Friday, the court dismissed Kraft Heinz’s application for special leave to appeal to the High Court in relation to packaging rights of the iconic yellow label.

The company’s executive chairman Barry Irvin said the decision “confirms” Bega’s right to use the distinctive yellow packaging of its smooth and crunchy peanut butter products.

Kraft has lost in an epic peanut battle with Bega over packaging rights.

Mr Irvin said in a statement the company is pleased the court’s original decision, handed down in April this year, will stand.

“We are a proud Australian company, and are proud to own Australia’s favourite peanut butter,” he said.

“Bega Cheese looks forward to continuing to produce and supply our customers with our much-loved peanut butter products.”

South coast dairy farmer, Bega Cheese supplier and shareholder, and Bega Valley councillor Tony Allen said the decision was “brilliant news” for Australia.

Tony Allen with his son Rocky at their Galba Holsteins property in Cobargo. Picture: Lyndal Reading

“I think the diversification of the company into iconic, branded products is important, especially with COVID-19 and the realisation food is important to us, especially when it is made and produced here in Australia,” he said.

“It’s made in Australia from Australian farmers for Australian people.

“Since the deregulation of the dairy industry, it’s difficult for manufacturers to make money just off milk.

“Diversification will help the company survive, which is good for suppliers and shareholders.”

The court battle began after Kraft was bought by Heinz and its Australian products moved to Mondelez International before being bought by Bega in 2017, in a deal the courts last year said included the trademarked branding.

Kraft had alleged Bega engaged in misleading or deceptive conduct over the marketing of its peanut butter products, and the federal court ruled last year that Bega has exclusive rights to use the iconic yellow lids, and red and blue labels.