P&G Sues McLane Over Copycat Brands

Procter & Gamble has filed suit against packaged goods distributor McLane Co. for copying the packaging of P&G brands including Bounty, Charmin, and Vicks’ NyQuil and DayQuil.

P&G filed suit on Dec. 22 against McLane Co., its Salado Sales subsidiary and Salado’s Consumer Value Products brand, charging trade dress infringement and unfair competition. The suit, filed in U.S. Federal District Court for the Southern District of Ohio in Dayton, argues that the similarities in packaging intentionally borrow the equity of P&G’s brands, and will confuse consumers.

“We believe this is a case of clear infringement, designed to feed on the goodwill of our brands,” said P&G Chief Legal Officer Jim Johnson in a statement.

P&G is asking for a preliminary injunction to stop distribution of the goods in question, and to require retailers to impound items already in stock.

McLane had no comment on the suit. The Temple, TX-based packaged goods distributor serves c-stores, drug stores, mass merchandisers, quick service restaurant and movie theaters. McLane is a subsidiary of Berkshire Hathaway, Inc., which bought the distribution business from Wal-Mart Stores in 2003.

Salado, a division of McLane, produces “control label” goods for McLane. Salado’s CVP brand (for Consumer Value Products) includes OTC drugs, personal-care products, candy and general merchandise. It also makes control label items (discounted brands similar to private-label goods but without the retailer’s name) under the brands Fun Shot (single-use cameras), Quality Brite (light bulbs), Work Fare (work gloves) and Road-Tech (auto fluids). McLane is the sole buyer of Salado products.