:. Food Industry News


Glaceau Goes to Court to Block PepsiCo Water

Source: Reuters
07/04/2006

Chicago - Beverage company Glaceau Thursday said it filed a complaint in federal court in New York, claiming that PepsiCo Inc.'s SoBe Life Water copies Glaceau's vitaminwater enhanced water beverage's packaging.

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The lawsuit, filed by Glaceau parent Energy Brands Inc., accused PepsiCo of mimicking vitaminwater's packaging in order to confuse customers.

Similarities include "a nearly identical" bottle, a two-toned label, a clear plastic cap and other factors, the lawsuit said.

The lawsuit asks that PepsiCo be stopped from selling Life Water in its current packaging and from doing anything else that is likely to confuse consumers into thinking Life Water is vitaminwater or comes from Glaceau.

The lawsuit also seeks triple financial damages from PepsiCo.

The lawsuit said PepsiCo is launching Life Water only after trying unsuccessfully to acquire the vitaminwater brand earlier this year.

PepsiCo plans to defend itself against the lawsuit and said Glaceau's claims were without merit.

"This is just an overreaction by Glaceau to competition in the marketplace," PepsiCo spokeswoman Michelle Naughton said. "Consumers have told us they clearly see the difference between SoBe Life Water and Glaceau vitaminwater."

The lawsuit is the latest skirmish in the beverage arena as companies like PepsiCo are trying hard to woo consumers who are moving away from sugary soft drinks to healthier low-or no-calorie products such as water and reduced sugar juices.

The added nutritional supplements in products like vitaminwater also are aimed at consumers who are willing to pay extra for a perceived health benefit.

PepsiCo shares were up 1 cent at $57.90 on Thursday on the New York Stock Exchange.



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