Discount retailers like Aldi and Lidl have built their success on selling lookalike products at lower prices, often mimicking the look of well-known brands and their products. This strategy has led to publicised intellectual property (“IP”) disputes in the UK, testing the boundaries of passing off, and protection of design rights and trade marks.
A landmark judgment in 2025, Thatchers Cider Co Ltd v Aldi Stores Ltd [2025] EWCA Civ 5, centred on Aldi’s “Taurus Cloudy Lemon” cider, which Thatchers argued infringed its trademark and passed off its branding. Initially, the Intellectual Property Enterprise Court (“IPEC”) dismissed the claims, but the Court of Appeal overturned the ruling. Lord Justice Arnold ruled that Aldi’s approach—leveraging an established brand’s reputation without causing direct confusion—was still infringing, under section 10(3) of the Trade Marks Act 1994.
The decision confirmed that even in the absence of direct consumer confusion, Aldi’s design leveraged Thatchers’ brand image to divert sales from the rights holder. Internal emails and social media evidence revealed intentional mimicry. This ruling strengthens brand owners’ ability to challenge lookalikes and underscores the importance of trademark registrations for packaging and product presentation.
Other cases have also refined the legal framework around lookalikes, offering critical insights but proving each case is considered on its own facts:
- Passing off is hard to prove: In • Moroccanoil Israel Ltd v Aldi Stores Ltd [2014] EWHC 1686 (IPEC), Aldi’s hair serum lookalike was deemed lawful as there was no consumer deception.
- Registered trademarks offer strong protection: • The Saucy Fish Co. v Aldi (2014) led to a favourable settlement due to robust trademark protection.
- Mascots and distinctive branding can be defended: Marks & Spencer (M&S) v Aldi – Colin the Caterpillar (2019-2021) reinforced the value of unique brand assets.
Unfair advantage claims are strengthening: Lidl Great Britain Ltd v Tesco Stores Ltd [2024] EWCA Civ 262 established that even established retailers can be liable for borrowing brand imagery but the court stressed the need for strong evidence when proving unfair advantage.
These cases highlight that relying solely on passing off is risky but not impossible. Trademark and design registrations provide a stronger foundation for legal action, particularly where proving consumer confusion is difficult but unfair advantage is clear.
The Discounters’ Strategy: Is Imitation the Best Form of Flattery?
Aldi and Lidl develop products following market leaders, with the aim of tweaking designs just enough to avoid direct infringement. In Thatchers, internal documents revealed deliberate mimicry, confirming that discounters aim to evoke premium brands while stopping short of outright copying.
Brand owners must remain vigilant by monitoring retailers, acting swiftly, and securing robust IP protections such as packaging trademarks and design rights to prevent brand dilution.
Changing Consumer Habits: Price vs. Brand Loyalty
Modern consumers are increasingly price-conscious, prioritising affordability over brand loyalty and perceived quality. This shift makes passing off claims harder to prove while strengthening unfair advantage arguments. Aldi’s Taurus cider, for instance, saw strong sales without advertising, benefitting from its association with Thatchers.
Brands can use consumer surveys, social media analysis, and market data to demonstrate reputation-based infringement.
Licensing: A Strategic Alternative to Litigation
While some brands aggressively litigate against lookalikes, others turn potential disputes into commercial partnerships:
- BrewDog & Aldi (2020): A Twitter exchange over a similar IPA led to a co-branded product, “ALD IPA,” generating goodwill and sales alongside a licence revenue for BrewDog.
- Aldi & Strongbow: Instead of litigating, Strongbow secured a deal to stock its cider in Aldi stores increasing its market reach.
These cases show that licensing can transform imitation into a commercial advantage, particularly for brands willing to engage with cost-conscious shoppers.
Protecting Your Brand: Key Strategies
- Register IP rights – secure trade marks for branding, and design rights for packaging, and product design.
- Monitor retailers – detect and address lookalikes early.
- Gather consumer evidence – use surveys, social media data, and customer feedback to support infringement claims.
- Enforce selectively – focus legal action on the most damaging imitators while managing costs.
- Consider licensing – structured deals can turn imitation risks into commercial opportunities.
- Strengthen brand identity – clear branding, consumer education, and strong marketing reinforce authenticity.
Protecting your brand requires a strategic approach. Get in touch to learn how we can assist with safeguarding your market-position and exploring commercial opportunities.
