Diageo wins 'confusing' Vodkat case

Published on Wednesday 15 December 2010 15:11

Johnnie Walker-maker Diageo has settled a two-year dispute with a rival firm over the name of a "confusing" vodka-based drink.

The group, which produces Smirnoff, won a court case against Intercontinental Brands (ICB) earlier this year over Vodkat, a blend of fermented alcohol and vodka.

Vodkat has a strength of 22 per cent alcohol by volume rather than the minimum 37.5 per cent of vodka.

A judge ruled that a brand name derived from the word vodka, which was not real vodka, was likely to confuse consumers.

Diageo, which also owns Guinness, yesterday said it had agreed a final settlement of an undisclosed sum with ICB, ending two years of litigation between the companies.

Simon Litherland, managing director of Diageo in the UK, said: "We are pleased to have finally reached a final settlement with ICB and that ICB has recognised that the use of the name Vodkat, or indeed any 'vod' prefixed brand name, on a product that is not vodka is likely to confuse customers."

The court ruling in January saw vodka join champagne, whisky and sherry as a drinks name protected by law from lookalike brands. Mr Justice Arnold ruled that ICB had passed off Vodkat as vodka.

A spokeswoman for ICB would not disclose the figure paid out to Diageo.

She said: "ICB has agreed to change the Vodkat brand name and packaging and will launch a new product from January/February 2011.

"The 31st January is the last day that ICB can ship stock out to wholesalers and retailers. There is no date at all beyond which retailers and wholesalers who hold stocks of VODKAT cannot sell the product."