Copycats

The success of so-called “copycat” products mimicking brands is resulting in shoppers paying more for own-label choices than they would otherwise, according to a new dossier from the British Brands Group.

Evidence sent to Trading Standards and the Competition & Markets Authority by the group contains nearly 30 examples of retailer own-brand products BBG claims use “parasitic” tactics to target shoppers.

BBG said while there was “extensive” evidence already that mimicking brands could persuade shoppers to accidentally buy the copycat products or believe they were from a branded manufacturer, this was the first good evidence they were being used to artificially push up prices.

The BBG’s evidence cites an interim judgment decision before the Scottish Court of Session in 2021, involving Hendrick’s Gin and Lidl brand Hampstead Gin, with the latter having moved from a distinctive pack design to a design closer to that of Hendrick’s.

Hendrick’s Gin maker William Grant & Sons took Lidl to court over alleged trademark infringement.

At the Court of Session in Edinburgh, Lord Clark gave the Glenfiddich owner an interim interdict that temporarily prevents Lidl from selling Hampstead Gin in Scotland.

But the BBG said data in the judgment also showed that the price per cl was 14% higher when in packaging similar to Hendrick’s as opposed to distinctive packaging, despite only a 1.4% increase in alcohol content.

“The similar packaging included a larger bottle so the per cl price could have been expected to be lower,” says the report.

“The judge noted the apparent intention of the defendants to ‘pay about 60% more than the price of the previous 50cl bottle (the new bottle being 40% greater in volume)’”.

BBG director John Noble said: “We all know why copycats are done, it’s either to sell more or to charge more. This is the first time we’ve had hard evidence.

“We have lots of evidence to show that people mistakenly buy these products, but this is the first time we’ve got good evidence of price hikes.

“This is particularly topical at a time when shoppers are facing a cost of living crisis.

“Brand owners do the very best they can to protect themselves but as far as the shoppers are concerned, they are very much on their own.”

Noble said it was “a mystery” that since the government tightened up consumer protection regulation in 2008 there had been only one enforcement by Trading Standards against a copycat product, involving a Müller yoghurt lookalike.

“The shopper has been left high and dry, which is why it’s so important to shine a light on this issue,” he said.

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