Introduction
A trademark is a legally sanctioned identifier, such as a symbol, word, or phrase, that differentiates a company’s goods or services from other competitors. The relationship between trademarks and branding is fundamental, as trademarks safeguard a brand’s unique identity, enabling consumers to consistently link products to their origin. This legal protection is essential for upholding brand integrity and building consumer trust. One exemplary case of effective trademark and branding synergy is Nestlé. Nestlé’s strategic trademark management highlights the importance of this relationship, contributing significantly to its global recognition. By consistently evolving its logo to align with contemporary design trends while retaining its core identity, Nestlé has built a distinctive and recognizable brand in over 187 countries. This strong trademark protection has cemented Nestlé’s position as a leader in the food and beverage industry.
Registration of Nestlé as a Trademark
Nestlé was founded in 1867 by Henri Nestlé in Vevey, Switzerland, initially focused on producing infant cereal to combat high infant mortality rates. Over the years, it has evolved into one of the world’s largest food and beverage companies, with a diverse portfolio ranging from dairy products to health science nutrition. Recognizing the importance of brand protection, Henri Nestlé ensured all products bore the “Nestlé” name, and in the year 1874, he registered its first trademark in Hong Kong due to the absence of Swiss trademark laws. The iconic bird’s nest logo was initially registered in Vevey in 1875 and only in 1890 Henri Nestlé able to register it as a Swiss federal trademark. Hence, Nestlé has been consistently registering its marks as part of its ongoing innovation and expansion into diverse markets. For instance, in April 2016, they filed 137 new trademark applications, covering a wide range of products from coffee varieties to pet food and ice cream brands. The nature of their trademark applications varies according to geographical regions and product categories. For example, they introduced a new brand called “Tyanouchka” for confectionery and “Little Nightmares” for ice cream specifically targeting the Russian market and countries formerly part of the Commonwealth of Independent States (CIS). Globally, they also launched “Arondio,” a new Nespresso variety. One of their recent trademarks, “Hydra Care,” was registered on July 11, 2019, in Switzerland.
Nestlé has been connected with India since 1912, operating under the name The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. Initially, the company imported and sold its products in India and registered its first trademark through the Madrid Protocol system named ‘MILKMAID’ and got recognize as a well-known mark on 8th March 2013. It has registered its marks under three classes –
- Class 29 – Meet and food of animal origin
- Class 30 – Foods of plant origin
- Class 31- Animal and live corpse
What sets Nestlé as a distinctive mark
Evolution of Logo – The Nestlé logo has evolved throughout the years in the following ways:
- 1866 to 1868 – In the first two years the company used the image with the shield with a knight’s helmet on it and a single bird in a nest centrally on it. The chromatic scheme was black and white, which made the logo quite serious.
- 1868-1938 – During these years, the company reinvented the logo alongside its renaming to Nestlé. In this logo, they have used the founder’s family coat of arms – a highly detailed nest where a mother bird feeds its three chicks. The entire image was drawn in a pencil style and kept until, with significant modifications.
- 1938 to 1966 – During these years, the logo was redrawn to include fewer pencil strokes and be more minimalistic. Additionally, it was nestled behind the wordmark a large ‘Nestlé’ inscription in all bold black capitals with prominent serifs.
- 1966 to 1988 – The logo was simplified, by drawing a nest into simple contours. In contrast, the company name’s typeface was changed to a straighter and thinner one.
- 1988 to 1995 – During these years, the logo was more simplified and modernized depiction of a nest with two chicks fed by their mother instead of three. Below the image, an inscription with the company title found its place. The bold and serif-free lettering was composed in all contours in this logo.
- 1995 to 2015 – During these years they made the wordmark completely black without significant modification in design. The birds and the nest were redrawn too where the brand designers removed almost all unnecessary strokes.
- 2018 to Present – During these years the logo and wordmark were changed into the colour brown.
Acquired Distinctiveness
Nestlé has invested heavily in marketing and brand promotion over the years, solidifying the acquired distinctiveness of its trademark. Through extensive advertising campaigns, product placement, and consumer engagement, Nestlé has strengthened its logo’s recognition and association with quality, nutrition, and trust in the marketplace.
Non-generic use
The term “Nestlé” is not generic when used in connection with food and beverage products. It functions primarily as a brand identifier rather than describing the products themselves. This non-generic use helps protect Nestlé’s trademark from being diluted or used improperly by competitors.
Transborder Reputation and Goodwill
Nestlé has achieved transborder reputation and goodwill through its global presence, extensive product range, and commitment to nutrition, health, and wellness. Its logo’s recognition spans across continents, bolstered by its marketing efforts, community engagement, and consumer loyalty.
Font of Mark
The logo uses a serif-free script. The letters are written in bold lines with rounded tips. The first capital ‘N’ is considerably larger than other characters, and it has a long line coming from its tip and covering the letters ‘e’ and ‘s’. Also, a distinctive dash stands above the last ‘e’.
Strategies behind building a global brand
- Nestlé has pursued early and comprehensive trademark registrations worldwide to protect its brands. Its oldest active international trademark registration issued in the name of Nestlé and Anglo-Swiss Condensed Milk Company (the name under which it traded at that time) dates back to 1895 and relates to the “Milkmaid” brand. This proactive approach ensures legal ownership and exclusivity across various markets, enhancing brand integrity and market presence.
- Nestlé employs a dual brand strategy categorized as Strategic and Local –
- Strategic brand strategy is positioned as a major commercial asset, featuring Nestlé’s well-established logo for widespread product promotion. If local Nestlé companies want to use the brand need to apply the associated brand guidelines.
- Local brand strategy focuses on products tailored to specific markets, catering to local preferences and needs. For example, in India, Nestlé has registered its trademarks with Hindi and Telugu logos, reflecting a strong local market connection. This approach grants Nestlé flexibility in brand communication and usage, enhancing the brands’ significance and value within targeted markets.
- It prioritizes legal vigilance and enforcement to safeguard its trademarks against infringement and unauthorized use. This includes actively monitoring markets, pursuing legal action against infringements, and collaborating with international trademark authorities to uphold brand exclusivity.
- Nestlé engages in strategic partnerships and alliances with local and global stakeholders to strengthen its trademark protection and expand its market presence. These collaborations support trademark enforcement, market access, and brand promotion. For example, in the iced tea sector, Nestlé partnered with Coca-Cola to launch the Nestea brand. This alliance leveraged Nestlé’s product creation and marketing with Coca-Cola’s distribution capabilities, effectively competing with Unilever’s Lipton without undermining their respective market positions.
Nestlé Legal Battles
In recent years, Nestlé has pursued multiple trademark lawsuits against companies for producing imitation products or using similar packaging, potentially confusing consumers. In the case of Nestlé v Cadbury, Nestlé aimed to protect the three-dimensional shape of its Kit-Kat bar. However, the UK High Court rejected Nestlé’s appeal, stating the shape lacked inherent distinctiveness and was not associated with Kit-Kat without its logo or packaging. Despite global recognition, the shape did not meet European trademark criteria, unlike in Canada and Australia. Additionally, Nestlé has faced challenges over the trademark ability of its slogan “Have a break, have a KitKat,” leading to various legal proceedings to defend its use.
In ITC Limited v Nestle India Limited also known as the Magical Trade War, ITC alleged that Nestle’s use of “Magical Masala” for its instant noodles infringed on ITC’s “Magic Masala” brand. ITC argued that “Magic Masala” had acquired distinctiveness in the instant noodle market and accused Nestle of passing off its product as theirs. However, the Madras High Court dismissed ITC’s suit, ruling that “Magic Masala” was descriptive, common to the trade, and laudatory, thus not eligible for trademark protection. The court emphasized the absence of visual similarities and the descriptive nature of the phrases used by both parties.
Conclusion
The intricate relationship between trademarks and branding is exemplified by Nestlé’s strategic approach. By prioritizing early and comprehensive trademark registration, Nestlé has protected its brand identity across global markets. The evolution of its logo and the adherence to non-generic use have solidified its distinctive mark. Despite legal challenges, such as those with Cadbury and ITC Limited, Nestlé’s commitment to safeguarding its trademarks has reinforced its market presence and consumer trust. Through strategic partnerships, extensive marketing, and legal vigilance, Nestlé continues to uphold its reputation as a leader in the food and beverage industry.
Written by Nikita Verma & Penmetsa Srihind , legal interns @intepat IP