Jim Beam and Coke in marketing blunder Tim Addington
Jim Beam and Coca-Cola Amatil faces a multi-million dollar marketing disaster after backing down over a trademark dispute with drinks giant Foster’s over the use of the word ‘Zero’ in its latest brand launch.
Foster’s claimed victory after Jim Beam Brands Australia and Coca-Cola Amatil agreed to change the font and type size of the word ‘Zero’ from its latest sugar free bourbon and cola ready to drink brand ‘Jim Beam and Zero Sugar Cola’, which was due to launch yesterday (10 September).
In October last year, Foster’s launched its own sugar free bourbon and cola drink called Cougar Zero, and after learning of Jim Beam’s plans raised the issue with both companies.
After a series of negotiations, Jim Beam and Coca-Cola last week agreed that Foster’s owned the exclusive rights to use the “Zero” trademark in respect of alcoholic beverages in Australia, and committed to altering the look of its brand’s design in consultation with Foster’s.
But Jim Beam has already produced thousands of cans and bottles featuring the disputed design.
Under the terms of the agreement, Foster’s has given Jim Beam until October 12 to sell its stock of Jim Beam Zero – understood to include 100,000 cases of cans and 40,000 cases of bottles – with the remaining stock being returned and destroyed if not sold.
After 12 October Jim Beam will not be allowed to use any point of sale, merchandising or advertising collateral that containing the disputed use of the word Zero, potentially costing it millions of dollars.
Jim Beam will still be allowed to use the word Zero on its packaging, but it will have to be the same font and type size as the word sugar.
A Foster’s spokeswoman told B&T: “If this was a Foster’s launch and we were putting as much investment in it as Jim Beam and Coke have in this, then we would be looking at millions of dollars in write off and we would be very disappointed that we had a major set back like this in a key launch.”
In response, James Sykes, marketing director at Beam Global Spirits and Wine Australia said: “We obviously can’t comment on what Foster’s have said and as per the legal agreement we are eager not to discuss the details of the settlement, and if some call this a million dollar marketing blunder that’s fine as we are only interested in the business result.”
