Bacardi objects to design of Magic Moments vodka

BANGALORE: Bacardi, the world���s largest privately-held drinks company, is believed to have told former ally Radico Khaitan that it objects to the new packaging and design of the latter���s Magic Moments vodka, alleging that its appearance ���is coming very close��� to Bacardi���s international blockbuster vodka brand Grey Goose. Sources said that Bacardi���s Bermuda headquarters has asked Jayant Kapur, chairman of the domestic subsidiary, to arrive at an amicable settlement with Radico through talks, as it seeks to protect the Grey Goose trademark, which was acquired for $2 billion three years ago.

Sources said Bacardi was clear that it would not be seen precipitating legal action against its former joint venture partner in the country. Radico Khaitan MD Abhishek Khaitan denied the development, saying he had not received any communication from Bacardi in this regard. Mr Kapur, too, said he was not aware of such a development. Bacardi and Radico terminated a joint venture for Indian-made liquor in 2005.

At the centre of the controversy is perhaps the technology employed by Radico to print the label and the visual elements directly on the bottle. Magic Moments was the first to use the printing technology in India, even though it has been employed for international brands such as Grey Goose and Moet Hennessy���s Belvedere vodka. Radico, which is in the midst of rolling out a new Magic Moments variant called M2 with revamped packaging, appears to have caught the attention for its reported similarities with Grey Goose.

���They (Bacardi) believe that it is getting very close to Grey Goose on several fronts ��� in the height of the bottle, printing style, and even in the visual imagery,��� an informed source told ET. Several industry observers said Bacardi���s indignation was not misplaced, even though Grey Goose and Magic Moments are not targeting the same set of consumers.

���It can be looked at as a ���passing off���, which is essentially alleged copying of a well-known trademark, and in this case it was not totally unexpected,��� said a top industry official. Radico, with leading brands such as 8 PM whisky and Contessa rum, is India���s second largest spirits company, with annualised volumes of about 17 million cases, but way behind the industry leader United Spirits��� 75 million cases.

Magic Moments is touted as one of the successful brand introductions in the domestic spirits industry, with the brand expected to mop up 1.4 million cases in FY09, up from 7 lakh cases in the previous year.