P&G on the war path vs private labels

Procter & Gamble has filed in the US its biggest trademark infringement to date involving nine of its iconic brands that range from shampoos, aftershave and toothpaste. The move is seen by industry observers as an attempt by P&G to forestall the growing popularity of private labels in major US supermarket chains.

P&G has filed separate lawsuits against Percara Enterprises and Cumberland Swan Holdings for trade dress infringement, trademark infringement and “unfair competition.” Jim Johnson, P&G's chief legal officer, said in a Financial Times report: “We believe these are clear cases of infringement, designed to feed on the goodwill of our brands.”

The lawsuits mark the fourth time P&G has taken legal action against private label manufacturers since December 2005. Percara sells personal care products using its own company name while Cumberland, which P&G also accused of “false advertising,” makes and distributes private label products. Among the P&G brands allegedly copied are the shampoos Herbal Essences Fruit Fusions, Head & Shoulders, Pantene, Old Spice body spray and Crest Pro-Health toothpaste.

Market analysts say although private label products have reached a mature phase in Europe, the growing US market makes it more attractive to private label producers. Big retailers such as Wal-Mart and Target are increasingly focusing on private label which generates significant sales and at the expense of iconic brands from major manufacturers.