The peanut butter packaging, left, used by Mondelez at the time of its sale to Bega Cheese (red for crunchy, blue for smooth) … and the Bega Cheese packaging after it bought Mondelez in 2017

June 4, 2021

Kraft Heinz has agreed to pay Bega Cheese $9.25 million to resolve a long-running dispute over peanut butter packaging.

Various court judgments have previously confirmed Bega’s right to use the “trade dress” for smooth and crunchy peanut butter products, ie. the distinctive yellow lid, yellow label and other features of the peanut butter jars.

In a statement issued to the ASX on Thursday, Bega executive chairman Barry Ivin said his company and Kraft Heinz have now entered in a confidential settlement regarding the issues of monetary relief and legal costs.

“As part of the settlement, all outstanding issues between the parties regarding the right to use the peanut butter trade dress and the legal proceedings have been resolved,” Mr Ivins said.

“The terms of settlement include Kraft Heinz making a payment to Bega Cheese of A$9.25 million.

“Following receipt of the payment by Bega Cheese, the legal proceedings will be discontinued.

“Bega Cheese looks forward to continuing to produce and supply our customers with our much-loved peanut butter products.

“We are a proud Australian company and are proud to own Australia’s favourite peanut butter.”

In 2017, Bega bought out the Peanut Company of Australia to secure its peanut supply.

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