In-House Brand War Ignites

Food Giant Krogers –  $115.3 billion in sales last year – is suing Lidl, the newest European super market chain to establish a presence in the U.S. Kroger alleges that Lidl’s “Preferred Selection” in-house brand is too similar to Krogers’ “Private Selection” label, thus creating confusion and diluting Krogers’ brands’ value. The lawsuit, filed June 30, claims that Krogers is suffering injury to its trademarks and the goodwill associated with them, and seeks all profits from the Preferred Selection brand. U.S. supermarkets are facing increased competition from German-based Aldi and Lidl, and their private-label brands, which have become crucial to the bottom line among all big grocers. Lidl’s stores feature private-label products sold much cheaper than rival equivalents. The company has 10 stores in Virginia and the Carolinas. It plans to open 100 stores on the East Coast within the year.