Bitter branding battle: the bubble bursts for Aldi over Thatchers’ trademark clash

On 20 January 2025, the family-run cider producer Thatchers Cider Company Limited (Thatchers) won its appeal against Aldi Stores Limited (Aldi) for trade mark infringement relating to its popular Cloudy Lemon Cider. The Court found that Aldi’s design of the "strikingly similar" packaging for its competing cider product, Taurus Cloudy Lemon Cider, infringed Thatchers' registered trade mark, which appears on Thatchers' Cloudy Lemon Cider cans.

The Court of Appeal’s ruling provides assurance to brand owners as it reinforces the protection of established brands and IP rights. It also serves as a warning against companies creating lookalike products that seek to 'ride the coattails' of another brand’s IP, while positioning their products as cheaper alternatives. The Court ruled in Thatchers' favour, finding that Aldi’s packaging was too similar to Thatchers' registered trade mark, taking unfair advantage of Thatchers' reputation among consumers.

How it all started

Thatchers Cloudy Lemon Cider launched in 2020 with a distinctive branding design prominently displayed on both the individual cans and the four-can packaging. This design was registered as a trade mark (UK00003489711) in Class 33 on 14 May 2020 (see the below image from the IPO trade mark register). Since the product's creation, Thatchers has invested millions in its marketing.

In May 2022, Aldi introduced its own cloudy lemon cider with packaging (see the below picture). Thatchers claimed that Aldi had deliberately imitated its design to benefit from the reputation and recognition Thatchers had built for its product, without incurring comparable marketing costs.

The Intellectual Property Enterprise Court (IPEC) case (2024)

Thatchers took legal action against Aldi, alleging that Aldi’s lookalike product misled consumers and unfairly profited from the goodwill and reputation of the Thatchers brand. While Thatchers did not claim that the brand name "Taurus" infringed on the name "Thatchers," it argued that the overall appearance of Aldi’s packaging was strikingly similar to its own, infringing its registered trade mark and constituting passing off under UK law.

In February 2024, the IPEC dismissed Thatchers' claim, finding that although there were similarities between the two designs, they were not significant enough to confuse the average consumer. Although Aldi admitted to using Thatcher's product as a "benchmark", the IPEC judge ruled that Aldi did not intentionally copy Thatchers' branding, and there was no unfair advantage taken.

If you're unfamiliar with the types of IP rights disputed in this case or need a refresher, read our previous blog about Tesco’s infringement of Lidl's logo, which provides a summary of these IP rights.

The Appeal (2025)

Thatchers appealed the decision after the IPEC judge dismissed its claim under section 10(3) of the Trade Marks Act 1994, which protects brands from others unfairly benefitting from their reputation. Thatchers argued that Aldi’s packaging created a "transfer of image" from its well-known trade mark - something the previous judge had not fully considered.

On 20th January 2025, the Court of Appeal ruled in favour of Thatchers. The Court found that while Aldi had not set out to mislead customers into thinking its product was from Thatchers, its design still reminded shoppers of Thatchers’ cider, making Aldi’s version appear to be a cheaper alternative. The judge remarked that "the resemblance cannot be coincidental" and that Aldi had intended to take advantage of Thatchers' reputation.

The Court also highlighted Aldi’s rapid sales success with very little advertising. This gave evidence that it had gained an unfair advantage by "riding on the coattails" of the Thatchers brand.

Practical tips for businesses

The appeal outcome is a welcome victory for brand owners, affirming that the time and investment spent building a brand can be effectively safeguarded against imitation products. The Thatchers vs Aldi case offers important lessons for businesses, particularly those who rely on branding to differentiate themselves in competitive markets.

Here are 5 key takeaways for businesses from this case:

1. Protect your brand with trademarks

As highlighted in this case, protecting your brand with a registered Trade Mark is a vital step in safeguarding your intellectual property. Trade Mark protection not only prevents others from using your brand identity but also provides you with the legal grounds to challenge infringements.

Business owners should invest in protecting their brand and designs through the proper legal channels, ensuring they have the tools to defend their identity if competitors attempt to copy or imitate their work.

2. Avoid lookalike branding

This case serves as a clear warning about the dangers of adopting designs too similar to existing brands. While Aldi may have intended to offer a cheaper alternative to Thatchers, the similarity in packaging was enough to cause confusion. Even if a business does not intend to mislead consumers, its branding could be seen as “riding on the coattails” of a competitor’s reputation.

When launching a new product or brand, always ask yourself: Does my design stand apart, or could it be mistaken for someone else’s? The answer could make all the difference in avoiding costly legal disputes.

3. Monitor your brand in the marketplace

Businesses should actively monitor the marketplace for any potential infringements. This includes keeping an eye on similar products and competitors that may be attempting to capitalise on your hard-earned reputation. If you spot a lookalike product, taking swift action - just as Thatchers did can be crucial.

As competition grows, particularly in crowded industries and saturated markets, early intervention can prevent prolonged legal battles. Addressing issues promptly can also save businesses from greater financial and reputational damage in the long run.

4. Build and protect your reputation

The Thatchers vs Aldi case is a prime example of how a brand’s reputation can play a crucial role in legal disputes. Aldi’s success in selling Taurus Cloudy Lemon Cider without promoting the product was largely due to the strength of Thatchers’ brand recognition. This reinforces the importance of creating a strong, positive reputation for your brand, as it can protect your business from imitators who may seek to take advantage of your hard work.

5. Be original and cautious of taking competitive advantage

While offering lower-cost alternatives is a common business strategy, companies must be careful not to exploit the goodwill of established brands. Copying another brand’s image too closely can lead to legal consequences and reputational harm.

Another recent IP case between M&S and Aldi serves as a clear example of this risk. Aldi’s festive gin bottles were found to infringe M&S’ registered design rights, as the design was too similar to M&S’s distinctive light-up gin bottles. Despite Aldi’s argument that differences in features such as the LED light and gold flakes should be considered, the Court of Appeal upheld the High Court’s decision in M&S’s favour. This case highlights the importance of ensuring product designs are sufficiently original to avoid potential legal disputes.

Businesses should prioritise originality in their branding, ensuring their designs, logos, and packaging do not unfairly take advantage of a competitor’s identity.

Conclusion

The Court of Appeal’s decision in Thatchers vs Aldi serves as a vital reminder of the importance of respecting intellectual property rights and maintaining distinct branding in the marketplace. Businesses must be careful when adopting new logos, designs, or product names, ensuring they do not infringe upon the trademarks and reputations of others. By doing so, business owners can avoid the costly, time consuming legal battles that can arise when branding decisions go wrong.

This case shows that protecting your brand essential for long-term success and highlights how valuable distinctive intellectual property can be in a competitive market.