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A major snack company has filed a federal lawsuit against discount grocery chain Aldi, alleging that the retailer’s store-brand packaging intentionally mimics some of its most iconic products to mislead consumers.

Some shit you should know before you read: If you’re unaware, Aldi is one of America’s fastest-growing grocery chains, known for its cost-cutting business model that focuses on private-label products. Originally founded in 1946 in Germany by brothers Karl and Theo Albrecht, Aldi split into two entities in the 1960s after a disagreement over selling cigarettes. The chain has expanded rapidly since opening its first US location in Iowa in 1976. As of 2024, Aldi operates more than 2,500 stores across 39 states, with plans for continued growth. The retailer’s success lies in its focus on efficiency: smaller store footprints, limited selection, and a strong emphasis on selling about 90% of its products under exclusive store brands, many of which are designed to resemble national brands in appearance and taste. This strategy allows Aldi to cut costs and pass savings on to customers, but it has also drawn legal scrutiny, including allegations that the chain copies name-brand packaging to boost the appeal of its private-label items.

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What’s going on now: In a notable development, Mondelez International (the maker of iconic snacks like Oreos, Nutter Butter, Chips Ahoy!, and Wheat Thins) has filed a federal lawsuit against Aldi, accusing the grocer of deliberately copying the packaging of its well-known brands to confuse consumers. Filed in Illinois, where Aldi’s US headquarters is located, the lawsuit alleges that Aldi’s private-label cookies and crackers feature packaging that is “confusingly similar” to Mondelez’s trade dress, or the visual appearance and branding of its products.

Mondelez argues that Aldi’s imitation packaging misleads shoppers into believing they are purchasing Mondelez products, when in fact they are buying lower-cost store-brand alternatives. The lawsuit provides side-by-side comparisons of the products, showing Aldi’s use of nearly identical design elements: blue packaging for sandwich cookies similar to Oreos, gold boxes for its “Thin Wheat” crackers mirroring Wheat Thins, and red packaging for its “Golden Round” crackers resembling Ritz. Mondelez says these design similarities are not coincidental but part of a calculated effort by Aldi to capitalize on the familiarity and market trust associated with its brands. The complaint also points to Aldi’s mimicry of other Mondelez products, including Nilla Wafers.

The company is requesting that the court issue an injunction to stop Aldi from selling the allegedly infringing products and seeks monetary damages for harm done to its brand reputation and market share. The company states that it has repeatedly contacted Aldi about the similarities over the years, prompting some packaging changes but not a full resolution.

This all comes as Aldi is no stranger to legal disputes over its packaging practices. Back in 2023, an Australian court ruled that Aldi had infringed on the copyright of Baby Bellies, a children’s snack brand, by using similar colors and a cartoon owl design on its packaging. Similarly, a UK appeals court sided with Thatchers, a cider company, earlier this year after it sued Aldi for mimicking the design of its lemon cider cans.

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