A one word difference in the name for a house brand has Cincinnati-based Kroger Co. suing U.S. newcomer Lidl.
Kroger says Lidl, which opened its first new stores in the U.S. in June, chose a name for its private label, “Preferred Selection” that is too similar to its own “Private Selection.”
According to an article in the Cincinnati Inquirer, Kroger says Lidl’s house brand “creates confusion for customers and dilutes the value of its brand.”
The company filed a trademark infringement suit in the U.S. District Court in the Eastern District of Virginia. Lidl’s U.S. headquarters is in Arlington, Va.
The suit alleges “as a result of Lidl’s wrongful conduct, Kroger has suffered and will continue to suffer irreparable injury.”
Lidl said in a statement its brand is original.
“Preferred Selection is a unique specialty brand that was developed by Lidl and has been positively accepted by our customers,” the statement said.
House brands are big business. Kroger’s house brands are estimated at more than a quarter of the company’s sales, and Lidl, which runs very similarly to its fellow German deep discounter Aldi, private labels are the majority of goods on the shelf.