The Court of Appeal of England & Wales has overturned a controversial High Court ruling in Thatchers Cider Company Limited v Aldi Stores Limited [2025] EWCA Civ 5, delivering a significant outcome in the ongoing Thatchers vs Aldi trade mark case.

This decision, which centres on Aldi’s lookalike packaging for its Taurus lemon cider, sets a major precedent for brand protection and trade mark enforcement in the UK.

Mike Tennant, Director and Chartered Trade Mark Attorney at Tennant IP, has years of experience representing clients in the food and drinks industry. Reflecting on the decision, he noted:

The headline for us on the Thatchers decision is that:

• An appeal overturned the original decision.
• The finding was made under unfair advantage – which protects marks with a reputation.
• It’s commercially a blow for Aldi, who tread a fine line on ‘copying’ the get-up of established products. Aldi has done remarkably well in defending itself in IP matters, but this case could impact its future product releases.

So, what does this landmark ruling mean for brand owners and businesses?

Background: Thatchers vs Aldi Trade Mark Dispute

Thatchers, a well-known British cider brand, launched its cloudy lemon cider in 2020 and registered a trade mark for its branding. In May 2022, Aldi released its Taurus cloudy lemon cider, featuring whole lemons and green leaves on its packaging—an overall style closely resembling Thatchers’ design.

Thatchers sued Aldi for trade mark infringement and passing off, arguing that Aldi’s lookalike branding unfairly benefited from Thatchers’ established reputation.

However, in January 2024, the High Court ruled in Aldi’s favour, stating there was no consumer confusion and that Aldi’s packaging was a fair representation of a lemon cider product. Thatchers appealed, arguing that Aldi’s approach unfairly gained from Thatchers’ brand reputation—leading to the pivotal Thatchers vs Aldi trade mark case heard by the Court of Appeal.

Court of Appeal’s Key Findings from the Thatchers vs Aldi trade mark case

1. The Appeal Overturned the Original Decision

The Court of Appeal, led by Lord Justice Arnold, found that the High Court failed to properly assess the branding similarities. Key points include:

• Aldi’s design created a strong link in consumers’ minds between the two products.
• This link unfairly benefited Aldi, allowing it to capitalise on Thatchers’ marketing investment.

This outcome serves as a reminder that brand owners should not hesitate to appeal if they believe a ruling misinterprets the law.

2. Unfair Advantage: A Significant Legal Finding

Rather than traditional trade mark infringement (where the focus is on direct consumer confusion), this case revolved around unfair advantage under Section 10(3) of the Trade Marks Act 1994. The Court of Appeal determined that:

• Aldi designed its packaging to resemble Thatchers’ product, benefiting from Thatchers’ established reputation.
• Even if consumers were not confused, Aldi still gained an unfair competitive edge.
• Aldi did not invest in separate marketing, instead capitalising on Thatchers’ existing brand goodwill.

This ruling underscores that brands with strong reputations can pursue legal action even when confusion is not the primary issue.

3. A Commercial Blow to Aldi’s Lookalike Strategy

Aldi is renowned for offering lookalike products, mimicking popular brands at lower prices. This ruling indicates a potential shift in how courts handle lookalike product disputes. If more brands follow Thatchers’ lead:

• Aldi and similar retailers may face more legal challenges.
• They might be forced to rethink their branding approach to avoid infringing established marks.

Key Takeaways for Brand Owners

The Thatchers vs Aldi trade mark case offers crucial insights for businesses in all sectors, particularly within food and drink branding:

1. Invest in Trade Mark Protection
   A robust trade mark registration is vital for safeguarding your brand’s identity.
2. Monitor the Market for Imitators
   Keep an eye on competitor products and packaging to detect potential infringements early.
3. Unfair Advantage Can Be a Winning Strategy
   Even without direct consumer confusion, a brand with a strong reputation can enforce its rights.
4. Do Not Be Afraid to Appeal
   If a ruling seems unfair or legally flawed, challenging it can yield a better outcome.
5. Retailers Must Tread Carefully
   This decision may compel retailers like Aldi to revamp their lookalike strategies, focusing on more distinct brand presentations.

What Can You Learn from This Case to Protect Your Brand’s Identity

The Court of Appeal’s decision in Thatchers vs Aldi represents a sweet victory for brand owners, demonstrating that strong trade marks deserve comprehensive legal protection. As Mike Tennant emphasises, unfair advantage provisions exist to prevent competitors from piggybacking on another brand’s hard-earned reputation.

If you’re concerned about trade mark infringement, brand protection, or lookalike products, Tennant IP is here to help.

• Call us today on 01633 258792
• Email mail@tennantip.co.uk

Our expert team provides tailored advice on protecting your trade marks, brand identity, and IP rights.