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Case 11.3
KRAFT FOODS GROUP BRANDS LLC V. CRACKER BARREL OLD COUNTRY STORES, INC.
United States Court of Appeals
735 F.3d 735; 108 U.S.P.Q.2d (BNA) 1630; 2013 U.S. App. LEXIS 23124 [November 14, 2013]
FACTS:
Kraft is a well-known manufacturer of food products sold in grocery stores.
Its products include a wide variety of packaged cheeses, a number of them sold under the
trademarked “Cracker Barrel” label. Kraft has been selling cheese in grocery stores under this
name for more than half a century.
Thousands of grocery stores carry Kraft cheeses bearing that label. Kraft does not sell any non-
cheese products under the name Cracker Barrel.
Cracker Barrel Old Country Store (CBOCS) is a well-known chain of low-price restaurants (opened in
1969 with approximately 620 restaurants), of which many are just off major highways.
Kraft filed suit upon learning that CBOCS planned to sell a variety of food products (not including
cheese) such as packaged hams, in grocery stores under its logo, “Cracker Barrel Old Country
Store,” (the last three words are in smaller type in the logo).
Kraft claimed that many consumers would be confused by the similarity of the logos and would
believe food products so labeled as Kraft products, with the result that if they are dissatisfied with
a CBOCS product they would blame Kraft.
PROCEDURE: The U.S. District Court granted a preliminary injunction in favor of Kraft.
ISSUE: Does Cracker Barrel Old Country Store’s label create confusion for consumers with Kraft’s
Cracker Barrel label resulting in a trademark infringement?
RULE: “A trademark infringement occurs when an unintentional or a willful unauthorized use,
misappropriating the goodwill and reputation that the trademark represents and confusing the public
about the identity of the user.”
REASONING:
1. The competing products would be likely to appear in the same store circulars. Such similarities and
overlap would increase the likelihood of consumer confusion detrimental to Kraft.
2. Both Cracker Barrel cheeses and most meat products that CBOCS has licensed for sale to grocery
products are inferior in any respect the consumer may blame Kraft.
ADDITIONAL INFORMATION:
Both Kraft and Cracker Barrel restaurants have legitimate trademarks. Their use in the same
location is what creates the confusion.
The Court felt that consumer surveys conducted by party-hired expert witnesses are prone to bias.
Among the problems identified are the following: when a consumer is a survey respondent this
