The core of the dispute centers on the packaging, or “get up,” of the Skyr yoghurts, which are a traditional Icelandic recipe. Yoplait, whose Skyr product launched in Ireland in September 2022 and quickly became a market leader with over 430,000 pots sold last year, argues that Danone’s blue and white packaging with mountain imagery is too similar to its own. Yoplait contends this likeness would likely confuse consumers and represents an unfair competitive tactic in the Irish agribusiness sector.

In her judgment, Ms. Justice Niamh Hyland of the Court of Appeal rejected Danone’s arguments, finding no material error in the High Court’s conclusion. She affirmed that the relevant customer was one specifically shopping for Skyr yoghurt in Ireland, not a broader category of white strained yoghurts. However, the judge did modify the High Court’s order, narrowing the injunction to restrain Danone from passing off their Skyr products as those of Yoplait, but not from selling any confusingly similar product. This modification was made to prevent a potential injustice of completely stifling market entry.

The legal battle has roots going back to March of this year when Yoplait wrote to Danone seeking an undertaking not to launch its Skyr product in Ireland. Danone, which had launched its own Skyr products in France back in 2018, refused, asserting its packaging was consistent with its established brand and trademarks. This highlights the fierce competition in the dairy industry, where market positioning and brand recognition are crucial elements of dairy economics.