Diageo – the owner of the market leading brand, Smirnoff – has obtained an important judgment protecting the vodka name from being passed off as a cheaper imitation called vodkat. Smirnoff has been sold in the UK since the 1950s and has established a strong reputation. Vodka is the biggest selling spirit in the UK with sales of about £2bn per year. Vodkat has been undercutting vodka because its weaker strength 22% alcohol costs less in customs charges than vodka, which has to have a minimum of 37.5% alcohol.
The High Court agreed with Diageo that sellers of vodkat had been passing their drink off as vodka. ‘Vodka’ had a reputation and goodwill relating to a particular class of clear, tasteless, distilled, high-strength alcohol; vodkat had been marketed in such a way as to deceive a substantial number of members of the public; and sufficient numbers were actually confused, resulting in lost sales and erosion of the distinctiveness of the vodka brand. The judge ruled that, as with certain other defined classes – like Champagne, Sherry, Scotch Whisky, advocaat and Swiss chocolate in previous court cases – vodka was a clearly defined class of goods too, meaning that vodka traders collectively shared the goodwill in the vodka name.
Sounds like a good result for Smirnoff. I wonder if they had a drink of the stronger stuff to celebrate?