Posted on 09/19/2023 5:02:11 PM PDT by nickcarraway
A lawsuit filed by Nestlé USA against two distribution companies could mean popular imported products from Mexico could be taken off the shelves of some stores in the United States.
According to court documents, the lawsuit was filed in 2021 in the United States District Court Western District of Texas.
Nestlé USA is suing two companies called Ultra Mundiales and Ultra International. The companies specialize in distribution of Mexican goods to other countries.
In the lawsuit, Nestlé says that neither distribution company "is an owner or licensee of Nestlé trademarks in the United States" and that they are not authorized to to sell Nestlé-trademarked products in the U.S. that are intended for sale in Mexico.
Nestlé's lawyers say the companies importing and selling goods meant for Mexico has created a "gray market" of Nestlé products which are "imported into the United States without the consent of the American trademark holder."
They say this has created confusion for customers because some labels of the imported products are only in Spanish or contain different nutritional information than the Nestlé USA version of those products.
If Nestlé USA wins this lawsuit, it could mean consumers in the U.S. may not be able to find Nestlé products imported from Mexico including the popular Abuelita chocolate, the instant coffee Nescafe, Nido milk powder, Media Crema and La Lechera dairy products.
I HIGHLY suspect that the distributers signed a contract that only authorizes distribution in Mexico.
Battle it out and let the (chocolate) chips fall where they may.
Old news from 2021. How about an update.
“According to court documents, the lawsuit was filed in 2021 in the United States District Court Western District of Texas.”
Filed March 25, 2020.
If they signed a contract, that may be one thing. But the Supreme Court and lower courts without reversal by the SC has upheld the First Sale doctrine that basically says “if you buy something you can sell it”. It covers goods sold to a reseller in the USA in one territory and later resold in another territory, sold to one market but resold at another market, and it even covers goods sold explicitly for export that are later re-imported and sold domestically.
This case may test whether products made outside the USA and imported are also covered - but given the history I’d make a small wager that it’s also covered by the first sale doctrine. When you buy something for resale, you take on the financial risk and have the ultimate right to resell it to recoup cost and minimize risk of loss. Some territorial contracts could be enforceable if the product is a dominant player in one or the other territory. Not sure these products would quality.
Unless people living in the US are willing to purchase the similar and more expensive product made in the US, they’re wasting their time.
https://www.axios.com/2023/09/14/nestle-usa-mexico-abuelita-la-lachera-latino
How about F off Nestle. The US consumer is already always getting screwed...no Toyota Hilux, no glass bottled coke, no Honda XR air cooled dirtbike....you have to go to Mexico to buy those products
The case is finally going to court this November.
If you’re interested in purchasing any of these products, you may want to stock up in case Nestle wins.
a contract that only authorizes distribution in Mexico.
= = =
Mexico, 20 miles inside the Texas border, 500 miles inside, inside New Mexico and Arizona, . . .
What’s the difference?
The courts rejected the defendants request for dismissal. The case has merit.
That may be the rub, violation of FD&C Act.
“How about F off Nestle. The US consumer is already always getting screwed...no Toyota Hilux, no glass bottled coke, no Honda XR air cooled dirtbike....you have to go to Mexico to buy those products”
We have the Tacoma. I like it better than the Hilux.
We have coke in glass bottles. But the consumer is not screwed. Consumers love the lighter no retun deposit required option.
The XR is still air cooled.
Yet we have Mexican-made Oreos, Ritz crackers, and Kellogg’s Corn Flakes readily available.
“If you’re interested in purchasing any of these products, you may want to stock up in case Nestle wins.”
I don’t think I have ever used any of those products.
“no Toyota Hilux”
I hear that Toyota will be discontinuing the HiLix and replacing it with the Tacoma.
Not sure how Nestle is getting hurt. Mexicans in this country prefer the familiar product, more sales for Nestle.
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