German-based discount retailer Lidl has hit back at Kroger after the U.S. supermarket chain filed a lawsuit accusing it of trademark infringement, Business Insider reported. 

In court papers filed last week, Lidl reportedly said "Kroger has offered a striking absence of evidence in support of its claims."

Lidl also said rival Kroger's allegations of copyright infringement were an attempt to tarnish its reputation and undermine its recent launch in the U.S. by labeling it a "copycat".

"Kroger is using this lawsuit to try to: disrupt the on-going launch of a new, emerging competitor that offers consumers high-quality products at far lower prices; distract from the positive reviews garnered by Lidl’s launch by painting Lidl as a copycat — when in fact Lidl is a decidedly different and (better) grocery experience; and drive up Lidl’s costs by having to defend against Kroger’s spurious claims," the filing says.

In a lawsuit filed on June 30, Kroger claimed Lidl’s ‘Preferred Selection’ brand label too closely resembled its own ‘Private Selection’ label.

The filing said Lidl’s mark and logo would be “likely to cause confusion, likely to cause dilution, and constitute unfair competition.” 

The U.S. chain filed the lawsuit less than two weeks after Lidl started rolling out its first U.S. stores.

In the new court filing, Lidl reportedly highlighted that on the same day of its U.S. launch, Kroger announced its margins were down by half and it had to lower earnings guidance for the year.

"Against that backdrop and in reaction to this increased competition, Kroger — two weeks later and without notice to Lidl — filed this suit and motion for a preliminary injunction on the Friday evening before the long July 4th weekend, and sought to have a hearing just days later to try to ram through extraordinary competitive relief to which it is not entitled," the court paper says.

"Although Kroger learned in November 2016 that Lidl intended to offer private-label products under the 'Preferred Selection' name and had more than six months to prepare its moving papers, Kroger has offered a striking absence of evidence in support of its claims."

The two supermarkets are expected to compete fiercely on prices.

www.freshfruitportal.com