A Swedish commercial court has fined dairysgroupsArla Foods AB for advertising a yogurt by saying it tastes of champagne, ruling that Arla must not in any way allude to the reputation of the bubbly French wine.
The market court''s ruling handed down on August 26 said Arla must pay the plaintiffs 800,000 crowns (,060) to cover their legal fees.
Two champagne lobbies based in France, INAO and CIVC, as well as French producers Veuve Clicquot Ponsardin and Pierre Cheval, sued Arla after the cooperative owned by Swedish and Danish dairy farmers in November 1999 launched products it said had champagne flavor.
Sweden and Denmark are members of the European Union, whose trade rules grant special protection to wines and foods with strong geographic associations, such as Champagne -- a name reserved for the sparkling wines from that French region.
Arla''s Swedish public relations chief Inger Soderlund said the controversial yogurt had been withdrawn in January 2000.
"It was intended as a temporary product launch all along, a special thing for the new millennium," she said, adding that Arla was unlikely to appeal the court''s ruling.
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