The recent ruling by the Court of Appeal in favour of Thatchers Cider against Aldi is more than just a legal victory. It’s a siren call for fmcg businesses to wake up and get serious about protecting their intellectual property. Aldi’s Taurus Cloudy Lemon Cider didn’t just look like Thatchers’ Cloudy Lemon Cider – it was a deliberate attempt to piggyback off Thatchers’ success. And this time, the court wasn’t having it.
A watershed moment?
Let’s not sugarcoat it: Aldi’s playbook has always been about providing cheaper, “exclusive” versions of market-leading products. But Lord Justice Arnold’s ruling went straight for the jugular, stating that Aldi had intentionally designed its packaging to remind consumers of Thatchers’ cider. This wasn’t clever marketing, it was blatant freeloading.
The court’s decision sends a clear message: the era of shameless copycatting could be coming to an end. For brands that have poured time, money, and creativity into building their products, it’s about time. As trademark attorney Peter Vaughan pointed out, Aldi’s approach to “benchmarking” leading products – essentially mimicking them – is a common industry practice. But the judgement shows that when it’s done so blatantly, it’s no longer “healthy competition” – it’s theft.
Aldi’s response: spin it, don’t win it
Of course, Aldi isn’t backing down. The supermarket giant is appealing to the Supreme Court, claiming its customers “know what they’re buying”. Really? If customers knew what they were buying, would Aldi need to mimic the branding so closely?
The court didn’t buy it, and neither should anyone else. Aldi’s spokesman can call it “low-cost innovation” all he wants, but there’s nothing innovative about slapping a cheaper price tag on someone else’s hard work.
Fmcg brands: innovate or get steamrolled
Here’s the real issue: Aldi isn’t going anywhere. Private label retailers are here to stay, and they’ve mastered the art of squeezing margins and winning customer loyalty with budget-friendly alternatives. The Thatchers victory is significant, but it’s one battle in a war fmcg brands can’t afford to lose. To survive, brands need to hit back fast, hard, and smart.
First, fmcg businesses must double down on IP protection. Thatchers’ relentless pursuit of justice shows what’s possible when brands fight back. Second, innovation must take centre stage. Aldi’s lookalike strategy thrives because the big players often let their products go stale. Create something unique – something Aldi can’t easily replicate – and customers will notice.
Finally, it’s time to get creative with customer engagement. Thatchers didn’t just win a legal case, it also scored a PR victory. Highlighting its innovation and originality reinforces its position as the “real deal” in the eyes of consumers.
No magic bullet
This ruling isn’t a magic bullet. Aldi and its peers will continue to push the boundaries, and fmcg brands need to be ready. As Martin Thatcher said: “Innovation is stifled by imitation.” If brands want to thrive in a world dominated by private labels, they can’t sit back and hope for legal victories. They need to innovate relentlessly, protect their IP fiercely, and remind consumers why the original is always worth it.
Still, let’s be clear: this is one court ruling in a country where branded products still dominate the grocery landscape. The dynamics are different across global markets, especially in countries where private labels have an even stronger foothold. A single legal win doesn’t guarantee success internationally – it’s a step, not a solution.
Private label retailers like Aldi are unstoppable, and they’re playing a long-term game. But fmcg brands hold the real power – if they choose to use it. Stop waiting for the courts to protect you. Double down on creativity, get serious about enforcement, and make your products so compelling that no cheap knockoff can compete. The fight isn’t over, but the brands that adapt, fight back, and push boundaries will not just survive – they’ll own the future of retail.
Ronny Gottschlich was CEO of Lidl UK from 2010 to 2016. Since founding Heunadel Retail Advisory in 2016, he has advised global retailers like Sainsbury’s, LuLu, and Tiendas 3B, while serving on boards including Turkey’s A101, and working as CCO at Gorillas.
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