Impossible Foods Scores Big Win In Legal Battle With Nestle

Plant-based food maker Impossible Foods scored a big legal victory against food giant Nestle S A/S ADR NSRGY, The Wall Street Journal reported.

What Happened

Nestle was ordered by a European court to rename its plant-based burger line "Garden Gourmet Incredible Burger." The "Incredible" portion of the name violates Impossible Foods' trademark and could confuse shoppers, accoridng to the court ruling. 

The loss represents a notable setback for Nestle, as the world's largest packaged-foods company hoped to capitalize on the growing demand for cheaper alternatives to meat and higher-end fresh food.

Nestle said it will appeal the ruling and is "disappointed," arguing that any company should be allowed to use descriptive terms in its name.

In the meantime, Nestle already decided to rebrand the product as Sensational across all markets in the European Union.

Why It's Important

Impossible Foods has zero exposure to the European market and made the case that Nestle's branding will impede its eventual push into the European market.

In fact, Nestle uses a different name for the U.S. market, as the plant-based burgers are called Awesome Burger, according to WSJ.

What's Next

Nestle isn't sure if it will need to rebrand its lineup in other global regions, like Australia.

Over-the-counter Nestle shares were trading 0.54% higher at $108.62 at the time of publication.

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Photo courtesy of Impossible Foods.