Supermarkets, Coop | Mills brought Coop to the competition committee:

Coop has launched a new package for its own Coop brand “Bak & stek” margarine, and it didn’t sit well with Mills, which is behind the well-known Melange margarine.

Mills complained about the supermarket chain to the competition committee of the Norwegian Business Confederation and, at the end of September, the case was processed. The reason is that Mills thinks Coop’s packaging is too similar to Melange’s packaging.

It was a question of determining whether the imitation of the packaging design was contrary to the Marketing Law § 30 and an action contrary to good commercial practices in accordance with the Marketing Law § 25 in the grocery sector.

Disagree

Mills responds that Coop has used the same colors as Melange’s packaging and that the packaging is very similar. Mills fears that Coop’s product will easily be mistaken for Melange when consumers pick up margarine from store shelves.

“Coop has deliberately chosen a design expression that copies Melange, and that implicates parasites in Mills ‘accumulated goodwill, says Mills’ justification, which is documented through the minutes of the Business Competition Committee meeting and Industrial”.

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Melange has been on sale since 1919 and therefore has been on the market for a long time compared to Coop’s “Bake & Roast”.

Coop, on the other hand, believes that there are clear differences between the two products and that the choice of color is not in conflict with the Marketing Act or poses a risk of confusion.

They believe, among other things, that the choice of color is based on the desire to indicate what product it is, and that it is legitimate for Coop to use gold, yellow and green in the margarine package.

“The use of the red Coop logo in the center is also in line with Coop’s template for packaging design for its own brands. The logo clearly shows that this is Coop’s own product and avoids the risk of confusion. Coop’s red logo and Mill’s fantasy animals are also different »

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– illegal

A majority on the competition committee of the Norwegian Confederation of Business and Industries, of those who considered the case, believe that Coop’s margarine is too similar to Melange.

“Coop” Bak & stek “margarine is an illegal imitation according to the Marketing Act § 30”, write in justification.

Most believe that Melange margarine has an iconic design that has been around for several years and is the market leader in the cooking margarine segment.

“Over time, Mills has been true to its design, and the marketing position Mills has thereby achieved for packaging places an obligation on competitors to keep their distance,” they write further.

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Mills also agrees that the way the colors are used in Coop’s margarine can lead consumers to mistake it for Melange. Most believe that it is a reprehensible imitation.

Only one person on the competition committee believed that Coop had not violated the Marketing Law. This is justified, among other things, by the fact that Coop has chosen to divide the product with a green square, as well as adding design elements such as spatula, rolling pin and stylized flowers, which distinguish the Coop and Mills designs.

“The average consumer will also miss Mills’ well-known Melange logo, recognize Coop’s red logo and understand that it is the brand of the supermarket chain itself. Although there is a strong inspiration and association with Melange, the condition of danger of confusion is not Present “, it is established in the justification of the minority assessment.

The majority, however, believe that the design elements of Coop’s margarine do not stand out enough, since it is designed as “stylistic templates in the basic color of the margarine container, so it does not appear as distinctive elements” .

Will discuss settings

Bjørn Takle Friis, Coop Communications Director, comments the result to Nettavisen.

– We are surprised that the majority of the sample believes that the “Bake and Roast” product is too similar to the Mills product. The only thing that is similar are the colors. In any case, Coop has never intended to imitate, he tells Nettavisen.

He says they still understand that Mills is concerned about the product’s competition to Coop, as he believes it is of high quality and superiorly cheaper than Melange.

– Now we will discuss what we do and if we make any adjustments that comply with the committee’s recommendations, he says, adding:

– In any case, the product will continue to be available to Coop customers at a very good price, regardless of the appearance of the packaging in the future.

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Waiting for the change

Kjersti Johannessen, Mills’ information manager, says they are not interested in creating a major media conflict about this, but still comments on the conclusion of the Business and Industry Competition Committee.

– Of course, we are happy that they agree with us that the packaging is too similar to our traditional Melange product, he tells Nettavisen.

Johannessen says they will now have a dialogue with Coop about what happens next.

– But we hope they comply with the conclusion of the competition committee of the Norwegian Confederation of Companies and Industries, he says.

You will not comment on Coop’s claims that Coop’s “Bak & stek” margarine is of high quality and superiorly cheaper than Melange.

– It is not about Coop developing its own product, but that the packaging is too similar. Melange is a traditional Norwegian product and a clear market leader. It’s the consumer’s preferred choice within the category, he says.