As previously reported on this blog, Kraft Foods filed suit against Cracker Barrel Old Country Store, Inc. (“CBOCS”) on January 31, 2013 in light of the latter’s plan to use the CRACKER BARREL trademark on products such as ham, bacon, lunch meats, and summer sausage in a broad retail outlets including grocery and club stores.
On July 1st, Judge Gettleman of the Northern District of Illinois granted Kraft’s motion for a preliminary injunction and enjoined CBOCS “from manufacturing, advertising, distributing, shipping, promoting, offering for sale, selling or licensing third parties … to use the Cracker Barrel mark on food products in retail or wholesale trade other than through CBOCS’ traditional trade channels consisting of CBOCS’ restaurants, adjoining CBOCS stores, CBOCS catalogues, CBOCS’ internet site, and CBOCS gift cards as currently distributed.”
Now, the parties have reached an agreement that allows CBOCS to ship its first products through other retail stores, but not under the “Cracker Barrel” name. Instead, it will use the mark “CB Old Country Store.”
Despite this agreement, the lawsuit is still moving forward as the parties continue to dispute whether Cracker Barrel’s expansion of use is an impermissible expansion to new retail channels or within its natural zone of expansion.