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Peanut butter packaging stoush ends in $9.25 million settlement

Years after Kraft’s ‘never oily, never dry’ peanut butter changed hands to Bega, legal proceedings between the two companies have seemingly ended with the US food giant agreeing to pay $9.25 million.

Kraft initially took Bega to court in 2017 after the new peanut butter owners kept the packaging relatively similar to Kraft’s traditional yellow-lidded tubs, and ran ads stating “Kraft peanut butter is now Bega peanut butter”.

Kraft claimed that it was misleading to consumers but Federal Court judges disagreed, dismissing the case several times in court. And, after years of failed legal action, Kraft and Bega have entered a confidential settlement which will see all court actions discontinued on receipt of Kraft’s payment.

The settlement will also cover legal costs.

“As part of the settlement, all outstanding issues between the parties regarding the right to use the peanut butter trade dress and the legal proceedings have been resolved,” Bega said in an announcement to the market.

“Bega Cheese looks forward to continuing to product and supply our customers with our much-loved peanut butter products.”

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