Arnott’s has launched legal action against ice cream company Streets following the breakdown of a marketing deal which saw the ice-cream brand using Arnott’s products to promote its Blue Ribbon ice-cream.

The Financial Review is reporting Arnott’s has launched Federal Court action aimed at stopping Streets from its selling Mint Slice ice-cream due to concerns the new product would lead shoppers to believe that it contained Arnott’s Mint Slices.

A spokeswoman for Arnott’s confirmed the legal action but declined to be drawn on the details, saying: “Arnott’s has been baking Australia’s favourite biscuits for over 150 years. Our brands are our business and we have a responsibility to protect them. As this matter is before the court we don’t have any further comments.”

According to Arnott’s, its Mint Slice range is its second-highest selling chocolate biscuit in Australia after Tim Tams.

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According to court documents seen by Fairfax, in 2004 and again in 2008, Arnott’s and Streets entered into an deal described as a “Biscuit Ice Cream Alliance” where they jointly developed ice-cream products, including Streets Blue Ribbon ice-cream, Arnott’s Mint Slice ice-cream and Streets Cornetto ice-cream.

The documents claim that in 2014, the two manufacturers intended to work together on another deal where they shared secret information, including biscuit recipes and supplier details, with Streets under a confidentiality agreement. However by last year, Arnott’s and Streets had stopped discussing collaborations and the alliance fell apart.

Arnott’s is asking the court to prevent Streets from supplying or promoting any ice-cream with the words ‘Mint Slice’ and asking that it pay damages.

Streets’ parent company, Unilever, also declined to be drawn on the legal action, with a spokesperson saying: “We can’t comment on ongoing legal proceedings.”