Apparently, there’s only room for one Cracker Barrel brand on supermarket shelves.
At least, that how Kraft Foods (NASDAQ:KRFT) feels. The packaged food maker has filed a lawsuit to block restaurant chain Cracker Barrel Old Country Store (NASDAQ:CBRL) from distributing a line of products under its own name, USA TODAY notes.
Kraft argues that Cracker Barrel’s plans would impinge on its own trademarked line of Cracker Barrel cheese products, which its has retailed for almost six decades. Consumers would be confused by the competing products, the food giant contends.
In November, Cracker Barrel announced that it would partner with John Morrell Foods Group to distribute packaged food items through a variety of retailers. The restaurant chain had previously sold a limited line of packaged food items under its own brand name online and at its own retail outlets, those limited distribution channels did not compete with Kraft’s Cracker Barrel brands.
Under its deal with John Morrell, Cracker Barrel has applied to trademark its brand name to cover products including meats, beverages and oatmeal and muffin mixes. Kraft is asking the court to void Cracker Barrel’s deal with John Morrell and restrict its branded foods to its stores and website.
Shares of both Kraft and Cracker Barrel Old Country Store slipped fractionally in Monday midday trading.