Food giants may lean more on lawsuits as private label encroaches on their turf

Mondelēz and J.M. Smucker have accused discount retailers of blatantly copying their products and packaging. Experts say more litigation is likely coming.

What happened

As food manufacturers look for opportunities to combat the rise of private label offerings, more CPG manufacturers are expected to sue retailers they claim are making copycat products.

Earlier this month, J.M. Smucker sued Trader Joe’s, alleging the grocery chain’s version of crustless PB&J sandwiches is an “obvious copycat” of its Uncrustables frozen sandwiches. The lawsuit came five months after Mondelēz International sued Aldi, alleging the grocer’s snack offerings replicate the packaging of Oreos, Chips Ahoy! and five other brands.

Why it matters

“What the national brands are doing is just throwing down a gauntlet and saying, ‘Look, you guys can't just get away with imitating our product,’ ” said Neil Saunders, managing director with Global Data. “There probably will be more skirmishes because the market is becoming more competitive.”

Once viewed as inferior knock-offs to branded offerings, private label products have evolved into formidable competitors that are now available at small mom-and-pop stores as well as retail giants such as Walmart and Costco. Today, shoppers can find them in nearly every aisle of the store, from canned vegetables and ice cream to meat and yogurt.

Private label is forecast to command more than a fifth of food and grocery sales in 2025, according to information from GlobalData, up from 12% two decades ago. Circana noted that in 2024 alone, sales surged to a record $271 billion, rising 3.9% from the prior year compared to a 1% rise among national brands.

This news brief is based on reporting published by Food Dive on 2025-10-27. The original report is linked below.