Small Business Enters into a Beer-War with Aussie Supermarket Giant, Coles

Yet again, another alcohol trademark war came our way. Coles, the Australian super-market chain on one side and a small family owned business, The Beer Drop, on the other side.  

Melbourne headquartered retail and consumer services chain, Coles, was established in the year 1916. Previously regarded as Coles Variety Stores, this chain is presently managed by Mr. Steven Cain. Over the past century, Coles Group has expanded its branches to about 807 chains throughout Australia, creating average annual revenue amounting to A$38.2 billion from its sales. The chain now offers online services as well; under the name “Coles Online” providing buyers with ‘click and collect’ as well as ‘home delivery’ options to choose from. On the other hand, ‘The Beer Drop’ which was launched in October 2019 is a small, family owned business engaged in sales of craft beer. This independent beer maker firm, merely mix-match beers of various brands, eventually to create attractive gift packs to be purchased by customers online.

The element giving rise to present dispute is that, Coles filed a trademark application for the mark ‘The Wine Drop’, a business arm of its First Choice Liquor Superstores in the year 2012 and in their view ‘The Beer Drop’ mark is likely to create confusion and deception in the minds of consumers.  Factually, the 6 months old alcohol brand was granted trademark registration in June 2019, almost 7 years after Coles’ brand ‘The Wine Drop’ acquired its trademark.

Alas! Just months after inauguration of ‘The Beer Drop’, the family faced continuous hits, starting with the coronavirus followed by an opposition notice from the Aussie liquor giant. A case like this makes us ponder upon the fact that many-a-times huge businesses adopt simple names, further making it difficult for small traders to enter the market.

“So, we were trademarking our business name, 'The Beer Drop', and we received a letter through IP Australia, that there had been an opposition to our trademark from Coles Liquor, and that I acted in bad faith registering the business”, said Evan Masters, owner of ‘The Beer Drop’ in an interview. It was added, “Coles are trying to stomp on our business basically. It feels like we're being picked on and bullied.” Upon such opposition raised by Coles, one spokesperson commented, “We are simply protecting an existing Coles mark which we registered eight years ago.”