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Nestlé USA’s lawsuit against two distributors, Ultra Mundiales and Ultra International, has raised concerns about a potential ban on popular Nestlé products like Nescafé in America. Ultra Mundiales and Ultra International distribute Mexican goods to various countries.
As the legal battle unfolds, speculation arises about whether Nestlé USA's lawsuit could result in a potential ban on popular Nestlé products like Nescafé in America, claims a report by Homes and Gardens.
Nescafé, an instant coffee brand cherished by many households, could be absent from store shelves if Nestlé USA wins the lawsuit against the distributors. Other products such as Abuelita chocolate, Nido milk powder, Media Crema, and La Lechera dairy products may become scarce, depriving American consumers of cherished favorites from Nestlé's Mexican lineup.
Nestlé's Efforts to Protect Trademarks and Maintain Consistency
Court documents reveal that Nestlé USA initiated the lawsuit in 2021 in the United States District Court Western District of Texas. The lawsuit claims these distributors have been selling Nestlé-trademarked products in the U.S. without authorization.
The legal action emphasizes that Ultra Mundiales and Ultra International are not owners or licensees of Nestlé trademarks in the United States, rendering their sale of Nestlé-trademarked products unauthorized and detrimental to the American trademark holder. It leads to potential issues with packaging, language, and nutritional information differences, according to a report by KSBW.
Nestlé USA's primary objective in pursuing this legal action is to safeguard its trademarks and ensure product quality and presentation consistency. By combating unauthorized distributors and their unauthorized sales, Nestlé seeks to maintain its brand integrity while upholding the trust of its customers.
Gray Market and Confusion for Customers
According to Nestlé's legal representatives, distributing goods designated for the Mexican market in the United States has created a "gray market" of Nestlé products. These Mexican-imported Nestlé products feature slight variations in sugar content and label colors compared to their American counterparts.
This has led to customer confusion, as some imported products bear labels solely in Spanish or have different nutritional information compared to the Nestlé USA versions.
Photo: Daniele D'Andreti/Unsplash
