Bunnings ‘don’t have right to use’ Dontas name, says Adelaide family
Bunnings’ plans to use an SA family’s last name and goodwill for a trade retail blitz is “unacceptable” and will have implications for generations, they say.
It’s being billed as the battle of the little guy v the behemoth – a fight over a name between a well-known local family and Bunnings.
The national hardware chain is considering using the name of Adelaide’s well-known Dontas family as part of a major expansion of a new brand across Australia and New Zealand.
And the family isn’t happy.
“This (use of the Dontas name) is contrary to the wishes of a significant part of the family who had a historical part in establishing the iconic South Australian business over 70 years ago,” trademark lawyer Dave Stewart, of Bennett + Co, said in a statement.
Lawyers’ letters have been exchanged. The family, which has interests in the hardware and racing industries, says plans by Wesfarmers-owned Bunnings to use its name “has serious implications for us, our children and future generations”.
The Dontas brothers – Mark, Troy and Supercars driver Craig – have historic links to the Adelaide Tools business, now part of Bunnings. The business runs deep in the family after their grandfather, Sam Dontas, founded Western Auto and Electrical Service in 1936, and the name was subsequently changed to Electric Power Tool Services.
Following Sam’s death in 1991, their aunt, Marissa Peach (nee Dontas), and husband Robert took control of the business in 1996, with the Adelaide Tools brand name launched in 2012.
Bunnings completed its acquisition of Adelaide Tools from the Peach family in May last year for an undisclosed price.
Marissa and Rob’s son Adam Peach remains involved with the business.
In June, Bunnings chief executive Michael Schneider unveiled the ambitious growth plans for Adelaide Tools during his presentation at Wesfarmers’ strategy day.
The business – with six retail stores, the Oaklands Mower Centre and an online store, which is strong in the trade supplier market – will be rebranded and expanded to as many as 75 outlets across Australia and New Zealand.
Mr Schneider did not reveal the new name, but a search of the IP register shows Bunnings’ trademark applications for “Dontas”, “Dontas Tools”, “Dontas Workgear” and a Dontas logo, “Onya Tools”, “Project Tools” and “Benchmark Tools”. The use of the family name is the bone of contention for the family.
“Bunnings purchased the business named ‘Adelaide Tools’,” Troy said.
“I don’t feel they have the right to use our family name nor should it have been part of any transaction.
“We don’t think Bunnings knew what they were buying.”
Bunnings’ commercial chief operations officer, Ben Mcintosh, said new names were being considered to help the company’s growth outside SA.
“One of the names is Dontas which recognises Adelaide Tools’ founder Sam Dontas and the company’s proud 70-year history,” he said.
“We’re disappointed that some members of the family aren’t supportive of this option. However, Dontas is just one of a number of names we’re considering.”
Mark and Troy separately own three Stihl dealerships in SA, which they said is “perpetuating the association” of their family name with trade and retail customers. Mark, who appears in the national Stihl television campaign, said the situation was “unacceptable”.
“Bunnings don’t sell Stihl products, but it will be perceived that we have a connection to our opposition by way of our family name,” he said.
“Our family name is rare, so it’s only natural these perceptions will happen. Bunnings seem determined to profit from our family name”.
“They really don’t have right to use our family name, and I feel they don’t understand the goodwill that our family name has in the South Australian tool industry connected to our businesses.”
Craig, well-known in the Supercars racing scene, has built a sports commercial business and carries endorsements by conflicting brands such as Total Tools, Bosch Tools, and further tool trade- connected brands.
Total Tools, owned and operated by Metcash, is in direct competition with Adelaide Tools and Bunnings.
“It doesn’t help anyone for Bunnings to be selling under the ‘Dontas’ name while I am an ambassador for Total Tools,” Craig said.
“This will create a lot of confusion. It has already been flagged as a conflict, and I am set to lose hundreds of thousands of dollars in endorsements.”
In an exchange of lawyers’ letters this week, the Dontas brothers learned Bunnings regarded the purchase of Adelaide Tools entitled them to use the “Dontas” name.
“Bunnings’ purchase of Adelaide Tools would have included Adelaide Tools’ goodwill. But Adelaide Tools was never known as ‘Dontas Tools’,” Mr Stewart said.
“Either the Peaches or Bunnings seem to have made a mistake in thinking that the purchase of the goodwill included acquiring the right to use the surname of the founder of the business.
“The Dontas brothers don’t think Bunnings started down this path deliberately intending to profit from the industry-famous Dontas name, but they think Bunnings has taken things a step too far.“
In April this year, Bunnings announced its acquisition of Adelaide-based Beaumont Tiles, the country’s biggest tile retailer, for an undisclosed sum.