A friend and colleague very recently passed on to me an interesting development in the consumer scene. Although very reliable and a respected name in the industry, these data related to me by a peer, and herewith shared with our readers, are as one side claims them to be. I will, of course, be happy to give equal space to the other side if they wish to disclaim certain items. As a consumer myself, I feel duty-bound to share this with the public.
Milo has enjoyed a generous share of the instant chocolate drink market over a span of several decades. My own kids in fact grew up with Milo, and my son enjoyed several summers of basketball with the Milo Basketball clinics. Now comes another chocolate drink, Chocquik to challenge Milo’s dominance of the market.
As pointed out by Columbia International Food Products in an official statement, they went through a rigorous development program to come out with an alternative instant chocolate drink, viable in terms of pricing and quality, and secured a BFAD certificate for their product. In order to appreciate the bone of contention of both parties, it is important to point out the differences in their packaging. Columbia states that its packaging colors include green, gold and brown. The choice of the colors green and gold, as they claim, was prompted by the popular dictates of Feng Shui as they connote "freshness, luck, good fortune", and "premiumness." However, the dominant brown color in front to denote a "pouring liquid shot" is of course meant to scream "chocolate" to consumers.
Milo drinkers are of course familiar with the predominantly green-colored packaging. To quote Columbia on the difference in the color proportions, however, this is how they claim it to be: "Chocquik has 70-percent brown, 20-percent green, and 10-percent gold. Milo has 90-percent green approximately."
Why are we dwelling lengthily on colors and packaging? Well, as narrated to us and claimed by Columbia International Food Products, Inc., a raid was conducted on their plant in Navotas recently. According to Columbia, armed members of the law, accompanied by media reporters and apparently some representatives of Nestle conducted the raid, "arrested key factory officers, hauled off millions worth of Chocquik products and packaging materials in a 10-wheeler truck, took important parts from manufacturing machines to incapacitate them, and entered and took pictures of restricted areas in the factory thereby compromising trade secrets." I quote verbatim from the faxed statement to me.
Apparently Nestle was able to secure a search and seizure warrant which led to the raid on the ground of "confusing the consumer…(by) copying the general appearance of Milo packaging." (quotation marks theirs.)
Now Columbia asks: "Since when has a color been expropriated by a brand to the exclusion of all others? Since when has "similarity" been a ground for a raid? Had we been repacking Milo, or passing off Chocquik as Milo to consumers, the raid would have been justified." They even add that if they had chosen, for instance, the brand name Nilo to confuse the buyers, it would have been more understandable. But Chocquik is sooo far from Milo. They also add that their "corporate logo directly above the upper left portion of the Chocquik ‘smile’ icon instantly establishes the product as a Columbia brand."
Because "there is no court order that stops Columbia from selling Chocquik, that means we will not stop in our mission to make a difference for the Filipino entrepreneur, working for the benefit of the Filipino consumer." They signed the statement "From the Management of Columbia International Food Products, Inc., Proud Makers of Chocquik Instant Choco malt Drink".
Incidentally, it is also very intriguing to learn from Columbia that "Nestle filed a complaint in Makati for ‘unfair competition and trademark infringement’ claiming that Chocquik is ‘confusing consumers’ because its packaging is ‘similar to Milo’s’." Columbia claims that this complaint was withdrawn on Mar. 31, 2006, and the judge dismissed the case because of the withdrawal notice. However, continues Columbia another complaint was filed on April 5, 2006 by Nestle in Muntinlupa, which presumably gave them the search and seizure warrant to conduct the raid. How true is this? I am intrigued by the forum shopping alluded to here.
As we the consumers are directly affected by this fight between David and Goliath, I am sure we all would like to get to the bottom of this issue. As I said, I only have one side of the story. It would be interesting to hear Nestle’s side.
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Mabuhay!!! Be proud to be a Filipino.
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