Aldi lookalike loses on Appeal

It’s not often that a trade mark decision truly fizzes with legal interest, but the Court of Appeal’s recent ruling in Thatchers Cider Company Ltd v Aldi Stores Ltd [2025] EWCA Civ 5 certainly has the sparkle. Overturning the High Court’s earlier judgment ([2024] EWHC 88 (IPEC)), the Court found that Aldi’s lookalike product, Taurus Cloudy Lemon Cider, took unfair advantage of Thatchers’ registered packaging trade mark for its Cloudy Lemon Cider product – despite no finding of likelihood of confusion or passing off.

This is an important moment in UK trade mark law, with implications that extend far beyond cider. If you're in the business of branding or packaging design – particularly in consumer goods – this decision is required reading.

Background - Cider with Rosie

Thatchers is a prominent family-run cider company in the UK, known for its distinctive branding and its lemon-flavoured cider, which is marketed under a registered trade mark. Aldi launched its lookalike Taurus Cloudy Lemon Cider in 2022, using packaging that closely resembled Thatchers’ product in design and colour palette. Thatchers alleged that Aldi’s packaging constituted trade mark infringement under section 10(3) of the Trade Marks Act 1994, arguing that Aldi unfairly benefitted from the reputation and distinctive branding of Thatchers Cloudy Lemon Cider.

At trial, the IP Enterprise Court rejected Thatchers’ claim, finding that the similarities between the products were insufficient to establish unfair advantage or reputational harm. The judge concluded that while Aldi’s Taurus lemon cider packaging bore some similarity to Thatchers’ registered trade mark (a composite get-up showing yellow lemons, green leaves, a lemony colour palette and stylised text), it was only low similarity. On that basis – and because there was no evidence Aldi had taken unfair advantage – Thatchers’ section 10(3) claim failed.

Thatchers appealed to the Court of Appeal, focusing on Aldi’s intention and the transfer of image from its trade mark to Aldi’s product.

The cider strikes back: the appeal

The Court of Appeal, led by Lord Justice Arnold, allowed Thatchers' appeal. The core of the Court's reasoning? Aldi intentionally designed its product to call to mind the Thatchers product and benefit from its reputation – and it worked.

Aldi lookalike - Key findings:

• The packaging trade mark was valid and had a reputation, not just because of the THATCHERS name but due to the overall combination of graphic elements. The judge below had erred in downplaying this.

• Aldi’s own internal documents (including one asking for a “hybrid of Thatchers and Taurus”) demonstrated an intent to evoke the Thatchers product and its success. While intention isn’t always decisive, here it provided compelling evidence of Aldi riding on Thatchers’ coattails.

• Sales of the Aldi product were significant despite no promotion, and the product sold out within months – strongly suggesting that the packaging’s familiarity contributed to its success.

• Even though there was no likelihood of confusion or harm to reputation, the use of a similar sign created a link in consumers’ minds and led to a transfer of image – the precise type of unfair advantage that section 10(3) is designed to prevent.

• Aldi’s conduct was not in accordance with honest commercial practices as it sought to gain an unfair competitive advantage.

• Damage to Reputation: Although Thatchers also argued that Aldi’s product was of lower quality and could damage its brand reputation, the Court found insufficient evidence of reputational harm resulting from consumer dissatisfaction with the Aldi product.

A packaging pivot: trend alert

Perhaps most interestingly for practitioners, this case is already inspiring a strategic shift. We’re seeing a growing trend among consumer goods brands to file trade marks for packaging alone – without wording – to capture look and feel in a legally enforceable form. The reasoning? If your packaging is distinctive and plays a crucial role in consumer recognition, you may not need to rely solely on brand names for protection.

Expect more stylised cans, wrappers, and labels to make their way into the trade mark register in the months ahead.

What does this mean?

This judgment reinforces the value of registering packaging as a trade mark – not just logos or brand names. If your product’s get-up has a distinct look that resonates with consumers, it could be eligible for registration and strong protection under section 10(3) – even without confusion or deceptive conduct.

It also shows that “benchmarking” (Aldi’s approach of using successful third-party products as design inspiration) can easily cross the line into infringement – especially when there’s evidence of a deliberate intent to benefit from another brand’s reputation.

The cider wars may have started with lemons, but the result is anything but sour for brand owners.

To find out more about the issues raised in this blog contact Rosie Burbidge.