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Nov 30 , 2014
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A Sweet Resolution for Hershey
Colorado’s booming recreational marijuana sales to the tune of $34.1 million per month have not just attracted the attention of budding entrepreneurs. In June of 2014, they also caught the attention of Pennsylvania-based Hershey Co.. In fact, for the past five months the candy-maker has embroiled itself in a federal lawsuit against TinctureBelle LLC, a Colorado company manufacturing marijuana-infused chocolates.
The claims include trademark infringement, trademark dilution, and unfair competition sparked by TinctureBelle’s marijuana-laced knock-offs of Hershey’s Reese’s, Heath, and Almond Joy candies. As evidence, Hershey presented side-by-side photographs comparing its packaging to that of TinctureBelle’s “Hashees,” and “Ganja Joy.” It also cites testimony from parents and doctors alleging that children have consumed the highly potent TinctureBelle candies by mistake, prompting a rash of hospital visits.
The complaint further alleges that because families and individuals trust Hershey to provide “delicious treats for people of all ages,” confusion as to source or sponsorship of these marijuana-infused products tarnishes Hershey’s reputation and goodwill. In fact, the company stressed that any association between itself and adult-oriented activities would harm the family-friendly image its brands have developed over generations.
Hershey Co. sought injunctive relief and damages, but the two companies settled in October 2014. Under the terms of a consent order, TinctureBelle agreed to discontinue use of any infringing names while recalling and destroying unsold inventory.
Interestingly, this marks the second time Hershey has sued a marijuana edibles company for trademark infringement. In June, the company also sued a Seattle dispensary for its sale of infused peanut butter cups under the brand name “Reefer’s.” Hershey’s agreement with TinctureBelle prohibits use of that same term in any products containing peanut butter.
The case also follows Hershey’s more speculative outing against Maryland Republican State Senator, Steve Hershey. Federal courts granted a preliminary injunction against the Senator, whose campaign ads flashed the name “Hershey” in white letters in a dark brown background. The complaint alleged a likelihood of confusion between his promotional material and the chocolate company.
For more, the case is Hershey Co. v. TinctureBelle, LLC, case number 14-cv-01564-WYD, in the U.S. District Court for the District of Colorado.