Diving overview:
- JM Smucker is suing Trader Joe’s, claiming the grocery chain’s crustless version of the PB&J sandwich is an “obvious imitation” of the Uncrustables frozen sandwich.
- The food giant claims Trader Joe’s is engaging in unfair competition by infringing on its trademark rights and using deceptive trade practices to profit from Smucker’s significant investment in Uncrustables.
- Smucker, who is seeking damages and lost profits, said that unless the court takes action, Trader Joe’s will “gain an unfair competitive advantage” and its actions “will continue to cause irreparable harm” to the food manufacturer.
Dive Insights:
The lawsuit represents the latest effort by a major food manufacturer to protect its market share as the popularity of private-label items soars. Mondelēz International sues Aldi. In May, it was claimed that grocery store snack products copied the packaging of Oreos and Chips Ahoy! And 5 other brands.
Consumer interest in private label products is growing as retailers invest more in the quality, taste and value of their products.
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Provided by Smucker
Over the past few years, private brands have gained much more momentum as inflation-weary consumers turn to cheaper in-store options. Earlier this year, Circana announced that private label sales would be $271 billion recordedCompared to 2023, it increased by 3.9%, while national brands increased by 1%.
Smucker claims in its lawsuit that consumers are “deceived into believing that Defendants’ products are in any way sponsored by, originated with, or are affiliated with Smucker, when in fact this is not the case.”
Uncrustables was Smucker’s standout brand. The Ohio-based company said in June: hard thing Sales rose nearly 16% to $920 million. Fiscal year 2025 marked the 11th consecutive year of double-digit growth. In Trader Joe’s lawsuit, Smucker said Uncrustables was on track to grow into a billion-dollar brand.
With rapid sales growth, changing consumer buying habits, and the ability to leverage the convenience of snacking, Uncrustables has hit several trends that resonate with today’s consumers.
Smucker said he “doesn’t have an issue” with other companies selling pre-packaged, frozen-thawed-and-eat crustless sandwiches, but Trader Joe’s Crustless Peanut Butter Strawberry Jam Sandwiches use a similar blue color on their packaging and have rounded sides. It said it mimicked Uncrustable by using its pleated sandwich design. The image on the retailer’s box shows a sandwich with a bite taken out, mirroring what appears on the Uncrustables packaging.
A Smucker spokesperson said in an email that the company “actively monitors the marketplace” to protect its brand and is “solely focused on protecting the unique trademark designs that represent the high quality associated with the Uncrustables brand and preventing consumer confusion due to imitation.”
Trader Joe’s did not respond to a request for comment.
