Seveth Circuit Upholds Cracker Barrel Injunction

Over 16,000 grocery and other retail stores carry Kraft's Cracker Barrel cheeses. Kraft has co-existed for 44 years with the well-known chain of low-price restaurants known as Cracker Barrel Old Country Stores (CBOCS). CBOCS, with over 620 restaurants, many along major highways, sells packaged food products such as ham, delicatessen meats, bacon, sausages, jerky, meat glazes, baking mixes, coating mixes, oatmeal, grits and gravies in its restaurants, small adjoining “country stores,” by mail order and online.

When CBOCS decided to introduce its non-cheese products into grocery stores (starting with packaged spiral ham) under a logo with “Cracker Barrel” appearing more prominently than “Old Country Store,” Kraft sued for trademark infringement and sought a preliminary injunction. The parties conducted extensive discovery and presented expert evidence (including consumer surveys), as well as live witnesses. Kraft argued that many consumers would be confused by the similar logos and, believing that the CBOCS products came from Kraft, would blame Kraft if they were dissatisfied with CBOCS' products. The U.S. District Court for the Northern District of Illinois granted Kraft a preliminary injunction, halting sale of the CBOCS ham in grocery stores until the conclusion of the case.