Asda's billionaire owners the Issa brothers are facing a legal battle with Waitrose after unveiling a discounted product range with a similar name.
The UK's third-biggest supermarket chain announced plans earlier this month for a new 'Just Essentials' line of low-cost products to help customers amid the cost of living crisis. However, this has sparked a legal challenge from Waitrose whose lawyers wrote to Asda claiming to have trademarked the ‘essentials’ name.
The new range by Asda is due to be launched in May with 300 items being sold in more than 500 shops. It will replace the Smart Price range that is currently available in stores, reports Lancs Live.
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However, according to reports, Waitrose claims the branding is too similar to its own Essentials range, which has been on the go since 2009. Asda, which was bought by Blackburn brothers Mohsin and Zuber Issa and their backers TDR Capital in 2020, argues 'essentials' is a 'commonly-used term' for discount product ranges.
Waitrose, which is owned by the John Lewis Partnership, said it had written to Asda. It raised trademark concerns and was awaiting a response.
A spokesman told the BBC : "We were surprised to hear that Asda is launching an essentials range as the Essential Waitrose brand has been in use since 2009 and has built up a strong reputation for value, quality and higher welfare standards in that time. As we've also protected the name as a trademark, we have raised this with Asda and are awaiting a response."
The Issa brothers started off in business by founding Euro Garages with a single petrol station in Bury before building it up to form a network of forecourts across the UK. They formed their company, EG Group, with the backing of TDR Capital and expanded into Europe before the brothers and the private equity firm teamed up to buy Asda in 2020.
EG Group now owns 6,000 forecourts, as well as various fast food brands in Europe and the US. Last October The Mirror reported EG Group would sell 27 petrol filling stations to Park Garage Group, as part of a deal made when buying Asda.
