The owner of Milka sues Aldi for copying, Hofer with border practices as well with us

Hofer’s campaign « Replace the brand, enjoy cheaper » ghosts, while their owner Aldi in the US faces allegations of giant Mondelez that he copies his packaging. What do they say about all this in Slovenian Hofer and what competent institutions?

The Hofer retail chain, which is well known to Slovenian customers as the local performance of the German discount giant Aldi, has recently been bet on the recognizable advertising campaign « Replace the brand, enjoy cheaper ». Hofer directly compares the prices of the products of renowned brands with the prices of its own, as a rule, significantly cheaper versions of their own brand products. The comparison in the price, for example, between Coca-Cola and Hofer’s drink River Cola is obvious. Hofer, which has been present in Slovenia since 2005 and has 93 shops and more than 2000 employees today, offers mostly the same or very similar products as Aldi in other countries, with an emphasis on their own brands, which represent as much as 90 percent of the regular offer.

(Not so) a sweet battle

While Hofer in Slovenia addresses buyers to « prudent purchases », Aldi on the other side of the Atlantic is facing serious allegations. The Mondelez International Corporation, the food industry giant and brand owner, such as Oreo, Chips Ahoy!, Toblerone, Milka and 7days, has filed a large, 72-page Aldi lawsuit in the US for alleged breach of brand rights. As reported CnnMondelez claims that Aldi « copies » the packaging of their favorite products.

In a lawsuit filed at the Federal Court of Illinois, Mondelez states that Aldi’s cookies and crackers of their own brand « Probably mislead and confuse consumers » and « devalues ​​the characteristic quality of unique packaging of Mondelez products ». If the practice is not stopped, according to the corporation, « it is » threatened by irreparable damage to Mondeles and his valuable brands.  » Mondelez points out similarities in the colors of the packaging, fonts and symbols in some products sold by ALDI. They require the merchant to compensate, the amount of which is not determined, and the judicial ban on further distribution of products with allegedly controversial packaging.

Hofer’s response: « We’re not talking about flavors, we just highlight the choice of choice »

Facement of questions about the campaign Strategy Replace the brand, enjoy the cheaper and allegations of the similarity of packaging in the light of US lawsuits, Hofer responded with explanations of his business philosophy. Their basic mission, they say, is to offer high quality products at the best « Hofer appreciates ». They achieve this by a discount principle where they optimize processes at all levels and reduce costs. A key part of this model is the sale of products of their own brands, which are involved in the entire process, from the selection of suppliers and ingredients to constant quality checks. This allows them to constantly control costs and quality contrary to the products of recognized brands.

Comparison of Hofer’s generic brand and Coca-Cole in the leaflet. Photo: Screen/Hofer’s Screen Flying

Regarding the campaign, replace the brand, enjoy cheaper in Hofer that its purpose is to offer customers to choose from an objective criterion – price. They emphasize that « many customers are not aware of the price range and thus the savings that can be brought to the brand change. » They ensure that the campaign respects all advertising guidelines, as it is based on a verifiable comparison of prices and « other brands does not show negative ». As they point out, the campaign « does not talk about their ingredients, flavors …, only highlights the choice ». For example, in a television ad, both compared coffee is said to be a real pleasure.

Going back to the Hofer campaign on the replacement of the brand in Slovenia, it is interesting to see some nuances. While Coca-Colo finds a direct comparison with the River Cola product in the flyer, another product presented, milk chocolate with Choceur hazelnuts (100 grams for 1.19 euros), such a comparison with, for example, Milka chocolate with hazelnuts-with which Hofer’s chocolate also shares a characteristic purple package.

Chocolate with hazelnuts of Hofer’s generic brand in the leaflet, according to some, for the reason that he fools the consumer, masks the contents of the packaging. Photo: Screen/Hofer’s Screen Flying

Given that Milka is one of the key brands of the Mondelez Corporation, which is currently suing Alda in the US, it could be assumed that Hofer may be more cautious about this product and avoids direct comparison due to current legal procedures of Milka’s owner.

When asked about the similarity of the packaging, such as the aforementioned purple color of chocolate, reminiscent of Milko, they reply in Hofer that when designing their own brands for the Slovenian market, they mostly rely on « Aldi’s design proposals, which most often creates a name and graphic image. » However, when the product is developed only for the Slovenian market, they design the packaging in cooperation with the supplier, following a simple design and focusing on content.

Despite the obvious similarities, the company was rare at the company regarding international legal complications: « We cannot comment on issues of international matters. » They added that they have not received any responses or complaints about a campaign in Slovenia so far.

Regarding the compliance of such practices with Slovenian legislation and good business customs, we also asked the Market Inspectorate of the Republic of Slovenia (TIRS), the Competition Agency (AVK), the Consumers Association of Slovenia (ZPS) and the Slovenian Advertising Chamber (SOZ). We expect their answers.

Aldi has repeatedly targeted lawsuits

This time it is not the first time Aldi is facing lawsuits because of the similarities of his products with established brands. As reported Cnnin December last year, the Australian Federal Court ruled that Aldi was responsible for a copyright violation in packaging of children’s snacks. In January this year, however, the British apple production company succeeded in a lawsuit against Aldi for breach of the brand.

Hofer, which has been present in Slovenia since 2005 and has 93 shops and more than 2000 employees today, offers mostly the same or very similar products as Aldi in other countries, with an emphasis on their own brands, which represent as much as 90 percent of the regular offer. Photo: Mina Kim/Reuters

Legal expert for brands Josh Gerbenwho is not involved in the case of Mondelez against Aldi, is for Cnn explained that the legislation is intended to protect consumers. « I can go to the store and reasonably assume that I recognize the name and buy from this brand, » Gerben said, adding that some consumers may think that they are buying some of the Oreo or Wheat Thins, but in fact they get a generic. Some companies want to « fly close enough to the sun » to get some benefit, but they do not go too close. Such lawsuits are therefore an analysis of each case individually, and in this case, as he pointed out, there is no clear boundary that decides on Aldi’s responsibility.