Dive Brief:
- Trader Joe's is suing a Canadian grocery operation called Pirate Joe's for violating its trademark, according to the Guardian. The Vancouver-based retailer buys Trader Joe's products and brings them across the Canadian border to supply local shoppers with goods not sold in their country.
- Pirate Joe's owner Mike Hallatt has launched a crowdfunding campaign to raise $250,00 for the trial, which is scheduled to take place in November. Hallatt says he has spent more than $1 million at Trader Joe's in the U.S. to supply his store.
- Trader Joe's sent Hallatt a cease-and-desist order after he opened his store in 2012, then pursued a trademark case. It was initially dismissed in October 2013 because the court ruled Trader Joe's couldn't sue in Canada, where it does not have any franchise locations.
Dive Insight:
While the existence of Pirate Joe's is certainly a headache for Trader Joe's, the absurd situation is a testament to the depth of shoppers' love for the American grocer. Trader Joe's — which is privately owned by German retail chain Aldi — has amassed a cult-like fan base for its private label wines, dried fruit, exotic sauces and premium frozen food products.
The success of Pirate Joe's also highlights international demand for the grocery chain's unique products and quirky store atmosphere. It's interesting the U.S. chain hasn't explored expansion into Canada since Hallatt opened the doors to his "pirated" store, which has proven to be incredibly popular, in 2012. Trader Joe's does not offer any online ordering or shipping services, so products cannot be shipped within the U.S. or internationally.
It's unclear how much of a financial impact Pirate Joe's is having on Trader Joe's. Regardless, the retailer may soon exact its revenge on Pirate Joe's which describes itself as "unaffiliated, unauthorized, unafraid." The Ninth Circuit Court of Appeals overturned the lower court's motion to dismiss Trader Joe's initial case against Pirate Joe's, sending the case to trial later this fall. In order to win, the American grocer will have to prove the pirate operation has done significant damage to its U.S. trademark.
It's uncertain if Pirate Joe's operations will come to an end in November when the case goes to trial. Still, the fact that the store remained unscathed by legal proceedings for five years is a victory in itself. It will be interesting to see if other "pirates" create similar stores in the future, or if Trader Joe's invests in ways for international fans to purchase its products.