Casella Wines sues Bronco Wine Company
- Friday 14 August 2009
Casella is alleging that Bronco’s use of square brackets around the name of the recently released super-cheap Down Under label infringes the ‘[yellow tail]’ name which is trademarked.
Documents were lodged with a Manhattan Court on Thursday.
Bronco, best known for the ultra-cheap US$1.99 Charles Shaw brand - nicknamed ‘Two Buck Chuck’- launched [Down Under] in July. It retails for US$2.99 a bottle.
It is wine bought from Australia’s 475m litre surplus, at prices reported to be as low as 40 cents a litre compared with the average price of $3.11 a litre for Australian wine exports in 2008-09.
Bronco’s chief executive, Fred Franzia, said just before the launch that he was targeting Yellow Tail, which sells 8.6m cases a year in the USA at about US$S6 a bottle, because he thought Australian wines were too expensive.
Casella Wines today issued a brief statement, saying it ‘felt it necessary to take steps to protect its [yellow tail] brand in the US, which it hopes to resolve by mutual agreement.’
It did not plan to make any other comment until agreement attempts had been ‘exhausted.’