The Supreme Court of Appeal dismissed Siqalo Foods’ appeal regarding the misleading labeling of their product, Stork Butter Spread. The court ruled that Siqalo Foods’ labeling conveyed a false or misleading impression about the nature of the product. According to Judge Visvanathan Ponnan, the word “butter” was prominently displayed on the product label, while the designation “modified butter” was barely visible. As a result, the court concluded that the label was intended to mislead consumers into believing that the product was pure butter.
The manufacturer of Stork Butter Spread, Siqalo Foods, has been ordered to stop selling and distributing the product within seven days. The company was found to be in violation of the Agricultural Product Standards Act and its regulations, which prohibit the use of marks that create a false or misleading impression about a product.
Clover SA, a company that has been producing a modified butter product called Butro since 1985, filed an application with the Pretoria High Court. Clover SA sought to prevent Siqalo Foods from illegally competing with them and trading in violation of the Act and its regulations. Clover SA claimed that Siqalo Foods’ product label misrepresented their modified butter product as pure butter, leading to consumer confusion.
The Pretoria High Court granted Siqalo Foods an interdict, preventing them from using labels that prominently featured the word “butter” on their modified butter packaging and promotional material. The court also ordered Siqalo Foods to remove the infringing labels from their products and to destroy any materials that could not be removed.
Judge Ponnan emphasized that Stork Butter Spread is a modified butter product rather than actual butter. Butter is made entirely from milk and contains no animal, vegetable, or marine fat. Modified butter, on the other hand, is an imitation of butter made from a blend of 62% plant oils and other ingredients, with only 38% consisting of a primary dairy product.
The court used a common sense approach to determine the likelihood of deception or confusion, taking into account the overall impression created by the labels and how they would be perceived by consumers in the marketplace. The dominant feature of the offending label, which prominently displayed the word “butter,” played a significant role in the court’s decision. Consumers would be drawn to this feature and may overlook the finer details that distinguish the product from pure butter.
Siqalo Foods has acknowledged the decision and is following it. They will halt the sale and distribution of the labelled packaging within seven days. Customers will continue to have access to the product that is currently available on retailer shelves. Siqalo Foods has insisted that its intention was not to mislead consumers and that consumer research supported the product’s classification as a modified butter spread.
Clover SA, the plaintiff in the case, had yet to comment on the decision at the time of publication.
