Former Kraft Heinz CEO Bill Johnson on food prices and tomato sauce shortage.
Like David and Goliath around a blend of mayonnaise tomato sauce, the small business owner of a nine-room Star Motel in Lacombe, Louisiana, Louis Kraft Heinz could not sue for selling a similar spice, the fifth U.S. Court of Appeals said.
According to the appellate court, Mayochup, the Heinz brand available nationwide in groceries, would be mistaken for Dennis Perry’s Metchup, which he sells in the foyer of his deep-south motel next to his used car garage.
Perry manufactured 60 bottles of Metchup and sold at least 34.
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His jokes about adapting Metchup’s packaging to sell millions of bottles could “be seen as an important business rather than a brand trap,” wrote Circuit Judge James Graves.
The judges re-examined whether he should cancel his trademark registration, as Kraft Heinz did not have the ‘heavy burden’ of showing that Perry had left his Metchup trademark.
The court heard the case – Perry v HJ Heinz Co Brands Inc et al., 5th U.S. Court of Appeals, no. 20-30418 – Returned to a federal judge in New Orleans.
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| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| KHC | DIE KRAFT HEINZ CO. | 40.70 | +0.56 | + 1.40% |
Perry sued Kraft Heinz after finding out that the company used a ridiculous “Metchup” bottle in an internet campaign to name the new sauce flavor, which was launched in September 2018.
As more consumers started buying healthier and less processed foods, Mayochup was created to strengthen Kraft Heinz’s product portfolio.
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Kraft Heinz was delighted that Perry’s grievance had been dropped.