The Economic Times daily newspaper is available online now.

    General Mills India unit, Pillsbury to settle dispute with Prataap Snacks

    Synopsis

    Both parties have decided to end a three-year-old dispute, where Prataap Snacks, maker of 'Yellow Diamonds,' agreed to change the font size and the packaging of its 'Rich Feast' products being sold under the label of 'Cookie Cake' and will not use shades of yellow and blue in its packaging.

    handshake_bccl
    "The parties have settled their dispute," observed Justice RI Chagla in his five-page order. "I am satisfied that the consent terms are in order, not contrary to law and have been drawn by the parties of their own volition in reflection of their true intentions."
    The local subsidiary of the US food major General Mills and its affiliate Pillsbury Company have decided to amicably settle the trademark dispute with BSE-listed Prataap Snacks Ltd with regards to the use of the phrase ‘Cookie Cake.’

    Both parties have decided to end a three-year-old dispute, where Prataap Snacks, maker of ‘Yellow Diamonds,’ agreed to change the font size and the packaging of its ‘Rich Feast’ products being sold under the label of ‘Cookie Cake’ and will not use shades of yellow and blue in its packaging.

    As per the same understanding, the US food major will not oppose the registration of an Indian firm’s label with the words ‘Cookie Cake.’

    “The parties have settled their dispute,” observed Justice RI Chagla in his five-page order. “I am satisfied that the consent terms are in order, not contrary to law and have been drawn by the parties of their own volition in reflection of their true intentions.”

    The pandemic boosted sales of several baking items and packaged foods usually consumed by restaurants or specialised kitchens. People forced to stay at home two years ago started cooking indulgent products on their own. The trend has now tapered off, but the market has expanded significantly since then. The overall market size of bakery premixes in India is about Rs 700 crore, and General Mills is by far the market leader with two-thirds of that market.

    Pillsbury Company LLC and General Mills India Pvt Ltd had approached the Bombay High Court in 2019 against Prataap Snacks and its affiliate Pure N Sure Food Bites Pvt Ltd alleging violation of their trademark by using the name of its product Rich Feast along with ‘Cookie Cake’ in the identical name and trade dressing.

    Subsequently, the court in an ex parte order in February 2019, restrained the Indian company from using trademark/trade dressing until further order. Later, the Indore-based Prataap Snacks agreed to make changes with regards to the name of the flavour on the wrapper, fonts and colour scheme of the packaging.

    “The plaintiffs (Pillsbury and General Mills) agree and undertake that they shall not challenge the use or registration of the defendants' label with the words ‘Cookie Cake’...in the same manner and font size,” said the consent terms filed by both the parties in the court on July 4. “...the defendants (Prataap Snacks) can mention vanilla flavour or tutti-fruity flavour or any other flavour instead of ‘chocolate flavour’ …depending on the flavours as per the defendant’s discretion.”

    In the case, Dhiren Karania of Khaitan & Co appeared for Pillsbury Company and General Mills while Prataap Snacks was represented by Neha Iyer and Vaibhav Keni of Legasis Partners.


    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more
    The Economic Times

    Stories you might be interested in