Dive Brief:

• J.M. Smucker is suing Trader Joe’s, alleging that the grocery chain’s version of crustless PB&J sandwiches are an “obvious copycat” of its Uncrustables frozen sandwiches.
• The food giant claims Trader Joe’s is engaging in unfair competition, infringing on its trademark and using deceptive trade practices to benefit from Smucker’s substantial investment in Uncrustables.
• Smucker, which is seeking damages and lost profits, said that unless the court acts, Trader Joe’s will “gain an unfair competitive advantage” and that its actions “will continue to cause irreparable injury” to the food manufacturer.

Dive Insight:

The lawsuit marks the latest effort by a major food maker to protect its market share as private-label items surge in popularity. Mondelēz International sued Aldi in May, alleging the grocer’s snack offerings replicate the packaging of Oreos, Chips Ahoy! and five other brands.

Consumer interest in private label offerings has been intensifying as retailers invest more in the quality, taste and value of the products.

During the last few years, private label has garnered even more momentum as inflation has caused inflation-weary consumers to switch to cheaper store options. Earlier this year, Circana said private label sales in 2024 were a record $271 billion, rising 3.9% from 2023 compared to 1% for national brands.

In its lawsuit, Smucker alleges consumers are “deceived into believing that Defendant’s product is in some way sponsored by, originates from or is affiliated with Smucker, when, in fact, it is not.” 

Uncrustables has been a standout brand for Smucker. The Ohio-based company said in June that Uncrustables sales rose nearly 16% to $920 million in its 2025 fiscal year — its 11th consecutive year of double-digit growth. In its Trader Joe’s lawsuit, Smucker said Uncrustables is on its way to being a $1 billion brand.

With its rapid uptick in sales, changing consumer buying habits and the snack’s ability to tap into convenience, Uncrustables hits on several trends that are resonating today with consumers.

Smucker said that while it “does not take issue” with other companies selling prepackaged, frozen, thaw-and-eat crustless sandwiches, Trader Joe’s Crustless Peanut Butter Strawberry Jam Sandwiches copies Uncrustables by using a similar blue color on its packaging as well as a sandwich design that is round and crimped on the side. The image on the retailer’s box also shows the sandwich with a bite taken out of it, mirroring what is displayed on Uncrustables packaging.

A Smucker spokesperson said in an email the company “actively monitor[s] the marketplace” to protect its brands and that its “focus is solely on protecting the unique trademarked design that represents the high quality associated with the Uncrustables brand and preventing consumer confusion caused by imitation.” 

Trader Joe’s did not respond to a request for comment.