Bega Cheese and Warren Buffett associate Kraft Heinz have finally finished their stoush over peanut butter with the Australian company getting a payout of $9.5 million to cover its costs of the litigation.
Bega told the ASX on Thursday that it had entered into a confidential settlement with the Chicago-based Kraft Heinz for the legal costs relating to the three-year battle over use of the distinctive yellow lid and packaging of its peanut butter jars – both smooth and crunchy.
Bega late last year won a court action brought by the US company over the colour of the lid and label of the product once known as Kraft peanut butter.
Kraft had been arguing since late 2017 that selling Bega the recipe for the peanut butter and the Melbourne factory where it was produced – the Australian company had not bought the right to use the yellow packaging.
As part of the settlement announced Bega said all outstanding issues between the parties regarding the right to use the peanut butter trade dress and the legal proceedings have been resolved.
The terms of settlement include Kraft Heinz making a payment to Bega Cheese of $9.25 million.
“Following receipt of the payment by Bega Cheese the legal proceedings will be discontinued,” Bega said in its statement to the ASX.
“Bega Cheese looks forward to continuing to produce and supply our customers with our much-loved peanut butter products. We are a proud Australian company and are proud to own Australia’s favourite peanut butter.”
Investors yawned at the news and sent the shares up 0.8% to $5.88.
