Food giants may lean more on lawsuits as private label encroaches on their turf

Core Insights - The rise of private label products is prompting more consumer packaged goods (CPG) manufacturers to take legal action against retailers for alleged imitation of their products [2][3][7] Group 1: Legal Actions - J.M. Smucker has filed a lawsuit against Trader Joe's, claiming that its crustless PB&J sandwiches are a clear imitation of Smucker's Uncrustables [2] - Mondelēz International has also sued Aldi, alleging that the grocery chain's snack products replicate the packaging of well-known brands like Oreos and Chips Ahoy! [2] Group 2: Market Dynamics - Private label products, once considered inferior, have become significant competitors in the market, available in various retail environments from small stores to large chains like Walmart and Costco [3] - Private label is projected to account for over 20% of food and grocery sales by 2025, up from 12% two decades ago, with sales reaching a record $271 billion in 2024, marking a 3.9% increase from the previous year [4][5] Group 3: Consumer Behavior - Inflation has led consumers to seek cost-saving options, making private label products more appealing [5] - Retailers are investing more in enhancing the quality and value of private label offerings, contributing to their growth [5] Group 4: Competitive Landscape - The competition between national brands and private label products is intensifying, with manufacturers increasingly willing to defend their market share through legal means [3][7] - The relationship between private label retailers and branded products is described as a "game of cat and mouse," where retailers attempt to closely mimic popular items to attract consumers [6][7]