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  • Bega Cheese (BGA) has won the legal battle against U.S. food giants Heinz and Kraft over its peanut butter labelling
  • The Federal Court has given Bega the tick of approval to keep using the famous yellow packaging on its peanut butter
  • However, the peanut butter court case is not over yet
  • The company is currently in court with Fonterra over a brand licensing dispute, also stemming from the Mondelez deal
  • The outcome of this case is expected towards the end of the year
  • On market close, Bega is up 2.16 per cent and is selling shares for $4.72 each

Bega Cheese (BGA) has won the legal battle against U.S. food giants Heinz and Kraft over its peanut butter labelling.

The Federal Court has given Bega the tick of approval to keep using its packaging on peanut butter.

Today’s ruling put an end to an appeal lodged by Kraft when Bega one the first peanut butter court case in May last year.

The issues between Kraft and Bega all started in 2017, when Bega purchased a range of pantry items such as vegemite, peanut butter and macaroni cheese from Mondelez International.

Bega kept the “trade dressing’ of the famous yellow lid and yellow label. The company also ran ads stating “Kraft peanut butter is now Bega peanut butter,”

Last year, the Federal Court was in favour of Bega and this morning dismissed Heinz and Kraft’s appeal.

Justice David O’Callaghan found Bega had acquired all the rights to use the yellow labelled and lidded peanut butter jar when it purchased the pantry items from Mondelez.

Therefore, the Australian company is “entitled exclusively” to use the packaging.

“We’d prefer not to be in court but sometimes you have to be in court to defend your position, and that’s what we have been doing,” Bega CEO Barry Irvine said to the ABC.

However, the peanut butter court case is not over yet. The company is currently in court with Fonterra over a brand licensing dispute, also stemming from the Mondelez deal. A judgement over this is expected later on this year.

On market close, Bega is up 2.16 per cent and is selling shares for $4.72 each.

BGA by the numbers
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