The world’s leading consumer goods manufacturer Procter & Gamble Company (PG) decided to settle the trademark infringement case against businesswoman Christy Prunier. She was sent a ‘cease and desist letter’ by P&G, based on the fact that Prunier’s brand ‘Willa’, comprising of skin care collection and a lip balm, was homophonous with P&G’s iconic hair care brand ‘Wella’.
Wella is a German company, and one of the world’s leading cosmetics suppliers. Procter & Gamble acquired a controlling interest in Wella AG, thus securing a major presence in the fast growing professional hair care segment.
P&G claimed that the branding, packaging and name of ‘Willa’ were similar to its hair care range of products Wella. However, Ms. Prunier defended that ‘Willa’ brand was named after her eleven year old daughter Willa Price Prunier, who was the main inspiration behind the brand.
Willa is aimed at pre-teenagers and provides a substitute for a maturing child who doesn’t want to use ‘babyish soaps’. The packaging was also made to match the taste of a pre-teenager. The lip balm, facial masks and lotions come in whimsical purple and white bottles. Willa is being distributed by Target Corporation (TGT), J. Crew and trendy Upper East Side boutiques like Blue Tree, owned by the actress Phoebe Cates.
P&G claimed that the similar sounding name might confuse consumers. Moreover, they believed it could have set a precedent that other companies could exploit to try and infringe the Wella trademark.
However, Prunier claimed that ‘Willa’ is for skin care and available at grocery stores, in contrast to ‘Wella’ which is for hair care and available only at salons.
The two companies were due to meet in court in Manhattan in New York on October 12. However, media attention in favor of Ms. Prunier prompted the retail giant to settle the matter out of court. Though the terms of settlement were not disclosed, New York Times reported that Prunier will be able to continue business and go forward with the proposed launch of the entire portfolio of the brand ‘Willa’ in March 2012.
We are encouraged by the company’s continual expansion of its portfolio, both through internal development and acquisition. However, Procter and Gamble currently is facing high commodity cost inflation and severe competition from companies like Kimberly-Clark Corporation (KMB) and Johnson & Johnson (JNJ) in the Western European markets in both the blade and battery businesses.
P&G holds a Zacks #3 Rank, translating into a short-term Hold rating.
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