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Tony’s Chocolonely Sued Over Copycat Marketing

July 25, 2024 for SAGE Publications: SAGE Business Cases Originals

 

Below is my contribution to a case study designed for graduate and post-graduate students to get a sense of how business can be effected by diverse, multidisciplinary issues. Editors later added teaching notes for professors, learning outcomes for school cirricula and abstracts for student clarity. 

The Issue

Chocolatiers in the U.K. are embroiled in a legal battle after Milka sued Tony’s Chocolonely for a copycat marketing campaign. Tony’s Chocolonely, a Dutch chocolate company, is known for its ethical stance on combating labor exploitation in the cocoa industry. Recently, they revealed a new initiative in Germany and Austria to shed light on the pervasive issue of child labor in the chocolate world. 

 

The initiative used four temporary wrappers that resemble iconic chocolate bars from industry giants Milka, Nestle, Mars, and Ferrero. The similarity in wrappers was a deliberate choice to call out these companies for exploitation prevalent in cocoa farming, primarily in Western Africa. 

Milka, one of Europe’s leading chocolate manufacturers, responded swiftly to the campaign, saying it amounted to trademark infringement. Milka’s parent company, Mondelez, asserts they own that iconic shade of purple under a color trademark throughout Europe, and that Tony’s campaign infringed on their intellectual property rights. 

Tony’s acknowledged the injunction, replacing the purple color with a neutral gray. Though they plan on appealing the injunction, they cited their dedication to fair wages, stating they would rather pay farmers than lawyers. The other three bars in the campaign were designed to look like Nestle’s KitKat, Mars’ Twix, and Ferrero’s Ferrero Rocher. So far, none of the other chocolate companies have responded – either positively or negatively - to Tony’s campaign. Milka has also not responded to Tony’s claims of child labor exploitation, merely on the trademark infringement.

 

Why Is It News?

This is not the first time Tony’s has ruffled some feathers with their activism campaigns and marketing stunts. In 2021, they came out with a chocolate advent calender that left the December 8th window entirely empty. They hoped the empty slot would highlight inequality in the chocolate industry and act as a conversation starter for change. Parents complained that their children were upset about missing a chocolate and the company was forced to issue an apology. 

In the past several years, consumers have become increasingly concerned with the morals of the companies they support, fueling new initiatives in corporate social responsibility (CSR). More and more consumers have expressed concerns over how capitalism and corporate greed can affect a number of societal issues, naturally gravitating towards companies that have the same ethics and ideals as them. 

 

A global study showed that customers are four to six times more likely to support brands that champion more progressive causes. Studies have also shown a link between CSR initiatives and long-term financial performance as consumers are loyal to brands they know to be socially responsible. This shift has some companies questioning what is more important: their brand identity or their own social impact.  

 

Tony’s claims that most large chocolate companies don’t pay a fair price for their cocoa, leaving cocoa farmers struggling to make a living wage. This then leads to exploitation on cocoa farms, with roughly 1.6 million children being forced to work the farms in Ghana and Côte d’Ivoire alone. 

Supporters of the campaign say the similarity in chocolate wrappers served to directly call out other chocolate companies for their exploitive practices. Critics wonder if the same point couldn’t have been made without borrowing from their competitor’s marketing schemes. Perhaps Tony’s could have directly called out these companies without violating trademarks. Modelez maintains that the current legal dispute underscores their commitment to safeguarding the integrity of their brand, which was cultivated over centuries of operation.

 

The recent issues highlight broader tensions within the chocolate industry, where ethical concerns and commercial incentives often clash. As the battle continues, both Milka and Tony’s will have to find a balance between corporate interests and social responsibility. 

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