Bega Cheese shares have hit a 2019 high after the food and dairy processor won a legal battle to keep using the trademark yellow lids on its peanut butter jars.
Shares in Bega jumped as much as 9.2 per cent after the Federal Court ruled that the Victorian company owns and has exclusive rights to use the yellow lid, and red and blue labels that most Australians associate with the product.
Bega shares hit $5.53 in early trade – the highest they have been since December 19 – and at 1425 AEST were still four per cent higher at $5.26.
Bega bought the peanut butter brand in January 2017 from former Kraft business Mondelez Australia as part of a $460 million deal for a basket of goods that also included Vegemite.
But Kraft went to the Federal Court claiming it still had the rights to the packaging style.
“The Federal Court judgment, which was delivered today, has rejected this, and determined that Kraft Heinz’s use of the trade dress is misleading or deceptive under Australian law,” Bega executive chairman Barry Irvin said following Federal Court Justice David O’Callaghan’s ruling.