PepsiCo plans alcohol launches in Russia after trademark appeal win?

By Ben Bouckley and Ekaterina Godunova

- Last updated on GMT

Related tags Alcoholic beverage

PepsiCo plans alcohol launches in Russia after trademark appeal win?
PepsiCo has won an appeal to trademark a name for alcoholic drinks that it could start producing in Russia, in what would be a world first for the beverage giant, but says it has 'no immediate plans' to launch products.

PepsiCo already produces fermented beverage kvaas under the brand name Russky Dar or ‘Russian Gift’, and applied to extend the name to three other beverages: sbiten, mead and cider under the NICE international trademark framework that Russia has signed.

Traditional Russian honey-based hot winter beverage sbiten comes in non-alcoholic and alcoholic versions (with red wine), while mead is a honey-based wine.

But PepsiCo spokeswoman Marina Kagan told BeverageDaily.com: "We regularly register for patents to protect our trademarks and reserve the right to explore future business opportunities, but we don't comment on future plans.

"What I can say, however, is that we have no immediate plans to launch any of the drinks registered,"​ she added.

PepsiCo Holdings Russia applied to Rospatent (the nations's Federal Service for Intellectual Property, Patents and Trademarks) to register ‘Russky Dar’ as a trademark, the body denied its application (in June 2011) on the grounds that the name was too akin to two existing brand names.

Registered brand names

russkaya_vodka

Namely registered brand name ‘Dar’ (a pineapple juice produced by Laktis) and well-known local brand ‘Russkaya Vodka’ (pictured left).

However, permission to register the brand name for sbiten, mead and cider was granted on May 17 when appellate body, the Chamber for Patent Disputes, resolved the dispute in PepsiCo’s favour, in a judgement available in Russian​ here.

Overruling the Rospatent decision following an appeal from PepsiCo in September 2011, the chamber said that the lower alcohol products would not be confused with vodka since they represented a specific range of low alcohol products.

The NICE classification is an internationally recognised system used by 147 states worldwide that groups goods and services into 45 classes for the purpose of registering trademarks and service marks, where Class 33 refers to ‘alcoholic beverages (except beers)’.

Vodka clash ruled out

The chamber noted that the product types covered in PepsiCo’s application represented low-alcohol containing beverages under the NICE classification, and would “not lead to confusion”​ with the vodka.

“They substantially differ from vodka by both their price categories, production methods, sales rules, as well as their organoleptic characteristics,” ​the chamber said.

“Therefore, these products/drinks, if branded 'Russkiy Dar' will not clash with vodka products which are branded 'Russkaya Vodka'."

Should PepsiCo start making sbiten, mead and cider and selling it in Russia – it will be subject to a the nation's pending new laws affecting drinks with less than 10% alcohol by volume, which (prior to the law’s introduction in January 2013) are classed as foodstuffs.

Signed off by former president Dmitry Medvedev, the law is aimed at principally aimed at curbing alcoholism and illegal production of beer by classifying it as an alcoholic beverage.

Related topics Markets PepsiCo

Related news