Stokely-Van Camp Inc. v. The Coca-Cola Co., 09 Civ. 3741
Decided: August 4, 2009
District Judge John G. Koeltl
U.S. DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Judge Koeltl
OPINION AND ORDER
This is a case about an advertising battle between two major consumer products companies over one company's comparison of its beverage to human sweat. That company advertises its beverage by promoting its inclusion of certain electrolytes contained in sweat, and its competitor wants it to stop.
In late March 2009, the defendants The Coca-Cola Company and Energy Brands Inc. (collectively, "Coca-Cola") launched a reformulation of its Powerade sports drink beverage called "Powerade ION4." Powerade ION4's main point of differentiation is that it is allegedly more like human sweat than both old Powerade and plaintiff Stokely-Van Camp's ("SVC") flagship product, Gatorade Thirst Quencher, in particular because Powerade ION4 includes small quantities of calcium and magnesium, small amounts of which are lost in sweat. On April 13, 2009, SVC filed this action against Coca-Cola for false advertising, trademark dilution, deceptive acts and practices, injury to business reputation, and unfair competition under the Federal Trademark Act of 1946, as amended, 15 U.S.C. §1051, et seq. (the "Lanham Act"), as well as New York state law. SVC also filed this motion to enjoin Coca-Cola from continuing to make allegedly false and misleading claims in its advertising for its Powerade ION4 product. SVC protests various advertising claims about Powerade ION4 and its inclusion of calcium and magnesium. It also complains about Coca-Cola's referring to Powerade ION4 as "The Complete Sports Drink," although it concedes it would be perfectly fine for Coca-Cola to refer to Powerade ION4 as "A Complete Sports Drink."