Kraft and Bega's peanut butter war just got nasty
Peanut butter is a guilty pleasure for many Australians, but soon, thanks to a bizarre legal stoush between American-owned Kraft and local brand Bega, buying this iconic condiment is going to give shoppers a serious headache.
At the heart of the battle is the design of the jar.
Kraft-branded peanut butter, with the famous, “Never Oily, Never Dry” motto, has graced Australian shelves for more than 90 years. But the American condiment manufacturer lost the rights to the product back in 2012, when the company split in two.
Kraft to reintroduce its classic peanut butter in Australia. Will compete directly against Australian-owned Bega Cheese Limited. #7News pic.twitter.com/zTUr54NcnX
— 7 News Sydney (@7NewsSydney) October 24, 2017
Kraft made an announcement this week, saying, “two of Kraft’s traditional favourites are set to return to supermarket shelves with Kraft Singles appearing from this week and Kraft Peanut Butter making a comeback in early 2018”.
But this glosses over the bitter intellectual property court dispute.
Currently, what was Kraft Peanut Butter is made by Bega, which own the rights to the recipe. Kraft is releasing a brand of peanut butter with a new recipe and new packaging. So early next year, peanut butter lovers will find themselves in an odd situation where if they want the classic Kraft taste, they have to purchase the Bega product.
When Kraft ditched its peanut butter products Bega got the factories and the recipes under the proviso that it could only use the Kraft name until the end of 2017. So Bega has been subtly rebranding the product under its own name.
Kraft wants its jar and distinctive colours back for when it relaunches its new peanut butter product in Australia next year, but Bega is reportedly not going to budge.
As you can see, the packaging is very similar.
Both companies have addressed the issue in statements.
“We cannot speculate on what Kraft has planned,” a spokesman for Bega told news.com.au. “However, Australian-owned Bega Cheese Limited purchased the original never oily, never dry recipe, as well as the Victorian factory where the former Kraft Peanut Butter was made for 55 years.
“Bega is proud to own and manufacture the same great tasting peanut butter that Australians have loved for 55 years in the exact same factory. The only change to Australia’s favourite peanut butter is that it will be sold as Bega Peanut Butter.”
Bega added, “what we do know is that it (Kraft’s new peanut butter) will be a different recipe, made in a different factory by different people”.
In a statement to news.com.au, Kraft said: “The future of the Kraft brand has never been in doubt. A series of historical corporate decisions saw the brand licensed to an external company for a limited period of time under strict conditions. It has always been our intention to continue with Kraft products in Australia. Kraft Singles will appear on supermarket shelves shortly and Kraft Peanut Butter in the New Year; both of which will be manufactured locally.”
What are your thoughts?
Hero image credit: Twitter / Matt Young