According to a commercial law expert, premium New Zealand butter company Westgold may lose a lawsuit in the United States on packaging similarities/branding with Irish butter brand Kerrygold.

Ornua, an Irish butter maker, argued that Westgold’s butter packaging in the United States was too similar to Kerrygold butter packaging.

The Westgold owns Westland dairy company and the CEO is Richard Wyeth. He stated that it had received legal notice from Ornua. While we would prefer that consumer preference be the final arbiter, we will fight the claims made. Westgold’s unique packaging was linked to its West Coast heritage.

However, Alex Sims, a commercial law professor at the University of Auckland stated, just because a corporation utilized packaging in one country does not guarantee it can use it in another. Similarities between products were not necessarily intentional. She claimed that because New Zealand butters were superior to US butters, Westgold butter posed a greater threat to Kerrygold in the US than Kerrygold butter did to Westgold in New Zealand.

According to an Ornua spokeswoman, the firm prioritizes the protection of Kerrygold’s distinctive brand and will not tolerate violation of its branding or trademarks. The complaint sought to prevent Westland from advertising, marketing, distributing, or selling butter goods bearing a trademark and trade dress identical to Ornua’s federally registered Kerrygold trademarks and trade dress. Trade dress is the commercial look and feel of a product that identifies and differentiates its source.

Westland sells Westgold Butter, whereas Ornua sells Kerrygold Pure Irish Butter. Both packages are similar in colour, have a black and white cow on them, and both have a grass-fed seal. The gold colour of both brands’ packaging was a subtle issue because it implied a luxury product.

According to the company, Westgold butter was offered in 550 Walmart shops across 19 US states last year. A 227g pack of Westgold butter costs $3.76 (NZ$5.90) on the Walmart website, down from $4.18. Kerrygold in the same size cost $4.18 USD. According to an Ornua representative, Kerrygold is the number one imported butter and the number two butter overall in the United States.

Westland could have selected any name and package for its entry into the US market, but they elected to enter the US market with a name and packaging that are confusingly similar to Kerrygold in order to take advantage of goodwill and strong reputation, said Ornua.