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Mexican standoff: Woolworths takes aim at Aldi over packaging DateDecember 10, 2013 - 8:44AM
Woolworths has stepped up pressure on rival Aldi to sign the grocery code of conduct, alleging the discount retailer's private label products may be infringing on the intellectual property of leading national brands, writes The Australian Financial Review.
Under the code of conduct signed last month by Woolworths, Coles and the Australian Food & Grocery Council, retailers and suppliers must respect intellectual property rights, including brand names, packaging designs and advertising.
Woolworths managing director of supermarkets Tjeerd Jegen has pointed to similarities between some of Aldi's exclusive brands and national brands, including Bundaberg ginger beer, Procter & Gamble's Pantene shampoo, General Mills's Old El Paso taco kits and Kellogg's Special K. Spot the difference: the similarity between the products' packagin has upset Woolworths. Spot the difference: the similarity between the products' packaging has upset Woolworths. Photo: Rob Homer
"One of our major competitors has 96 per cent of their range that is own-brand," Mr Jegen told The Australian Financial Review. "If you don't look carefully, you'd think it came from suppliers' brands."
Mr Jegen called on Aldi to sign the voluntary code of conduct, echoing comments by Woolworths chief executive Grant O'Brien, Coles managing director Ian McLeod, and Wesfarmers chief executive Richard Goyder.
Metcash has said it is reluctant to sign the code because it played no part in the negotiations and the code is irrelevant to its business model as a wholesaler, rather than a retailer, with no control over shelf space or retail prices.
Aldi has yet to comment on its position, although managing director Tom Daunt has said in the past that he supports any code that "levels the playing field". Mr Daunt was unavailable for comment on Monday.
Mr Jegen turned up the heat on Aldi. "In order to get a level playing field, I can't understand why every retailer is not signing up to the code," he said. "Everyone is asking for a level playing field and we're providing it now."
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