Fage v Chobani: Court of Appeal says ‘Greek yoghurt’ must actually be made in Greece

What happened

Fage had sold yoghurt made in Greece under the description "Greek yoghurt" in the UK since the 1980s, along with other suppliers who followed the same labelling practice. In 2012, Chobani, a company based outside the UK, launched yoghurt made in the USA but labelled it "Greek yoghurt" for the UK market, despite internal advice warning that this could mislead shoppers about where it was made. Fage sued for passing off, a legal claim that protects the reputation a business has built in a name or description, and won a permanent injunction in the High Court. Chobani appealed.

What did the court decide in Fage UK v Chobani UK?

The Court of Appeal dismissed Chobani's appeal. It held that the trial judge was entitled to find that a substantial number of UK shoppers believed "Greek yoghurt" meant yoghurt actually made in Greece, and that this mattered to them when buying. That was enough to satisfy the three elements of passing off: goodwill in the description, a misrepresentation by Chobani that misled customers, and resulting damage to Fage. The court also rejected a new argument that an EU regulation on protected geographical indications blocked or limited the claim, finding that "Greek yoghurt" fell outside that regulation because it carries no equivalent reputation in Greece itself.

What we learned from this

• What I'd take from this is that a geographical description can become something you own a stake in commercially, provided customers have genuinely come to rely on it meaning what it says. Keep clear records of how long you've used a description and how customers understand it, since that evidence is what won this case. A phrase doesn't need formal registration to be protected if a labelling convention has built real consumer trust around it. Don't assume EU or regulatory schemes always override a passing off claim; the court found this term fell outside the regulation's scope.

Things to be aware of

The businesses involved

What happened next

• IPKat covered the judgment as a closely watched decision in the Greek yoghurt dispute, reporting on how the Court of Appeal handled the passing off claim.Source: IPKat, January 2014

What others said about it

• Brick Court Chambers noted the ruling protects the "Greek yoghurt" product name, treating the judgment as a significant outcome for the passing off claim brought by Fage.Source: Brickcourt, January 2014
• D Young & Co explained the case as an example of extended passing off, where a group of traders shares goodwill in a descriptive term rather than one business owning it alone.Source: D Young & Co