Kraft, Bega feud over Australian peanut butter market
AUSSIE food producer Bega is locked an international battle with food behemoth Kraft over control of the local $110 million peanut butter market.
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AUSSIE food producer Bega is locked an international battle with food behemoth Kraft over control of the local $110 million peanut butter market.
Bega took over the Port Melbourne peanut butter factory last year that once supplied Kraft and then took out advertisement claiming it was now producing “Australia’s favourite peanut butter”.
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But in February, Kraft — which controls 65 per cent of Australia’s peanut butter market — dragged the Aussie company in to United States District Court in New York, claiming Bega had also nicked its packaging design.
Kraft wanted the court to order the companies come to an agreement over the matter.
Kraft also objected to claims it would no longer sell peanut butter and its recipe had been taken over by Bega.
Bega took out adverts claiming: “Australia’s favourite peanut butter has changed its name. Kraft peanut butter is now Bega peanut butter. Never oily, never dry, with the same taste you’ve always loved, and now is Aussie owned by Bega.”
Kraft hit back, saying it was still in the peanut butter business: “In a move that will be further celebrated by millions of Australians, Kraft Peanut Butter will also be back on Australian supermarket shelves in early 2018 ... We are listening to our consumers and we know that Kraft Peanut Butter is the one Australians love.”
But the New York case is now on hold with the trial of the Federal Court today saying it wants to sort out the breakfast spread trial of the century.
“I am inclined to grant an injunction the effect of which will be to restrain (Kraft) from taking of any further steps in the arbitration pending the determination of this proceeding … and fixing the proceeding for trial, with the expectation that it will commence in the next month or two,” Justice David O’Callaghan said.