Kroger-Lidl Lawsuit Proves PL’s Power Today

The lawsuit Kroger filed against Lidl, set to go to trial in January 2018, is a good sign for the private-label industry, according to one branding expert.

In July, the Cincinnati-based retail giant filed a federal lawsuit against Lidl, which bases its U.S. operations in Arlington, Va., claiming that the deep-discounter’s Preferred Selection brand infringed on Private Selection, one of many own brands carried by Kroger. A U.S. district judge denied Kroger’s injunction request to force Lidl to stop selling Preferred Selection, noting that “private” and “preferred” have different definitions, and set a Jan 11, 2017, date for a bench trial.

The lawsuit has created much attention and drama in the private-label industry, as it pits the “new kid on the block,” Lidl, against a grocery veteran, Kroger. And it shows just how far private brands are come, says Todd Maute, a partner at New York-based branding agency CBX.

Read the full story from Store Brands, a sister brand of Progressive Grocer, here.