Battle of the Caterpillars - “copycat” marketing at its extreme

25th March 2022

Battle of the Caterpillars - “copycat” marketing at its extreme

Aldi and M&S have been locked in a lengthy (and very public) battle over a trademark breach for just under two years. You might be forgiven for thinking cake doesn’t seem like a big enough deal to start a war, but this is not just any cake….it is M&S’s beloved Colin the Caterpillar. 

This product line, which first hit the shelves in 1990, is a particularly successful part of the brands offer due to its popularity with customers.  Sales are around 450,000 cakes per year and, with the addition of Colins wife in 2016, Connie the Caterpillar, sales of the product line have increased by approximately 175,000. M&S also introduced the first same sex caterpillars in time for Valentines 2022 to ensure the brand remains relevant and inclusive.  So maybe this is something worth protecting.

The battle first started when Aldi adopted a ‘copycat’ marketing strategy, creating its own caterpillar cake called Cuthbert in 2019. Cuthbert was almost an identical twin in terms of size, colour, ingredients and packaging – so much so, a flurry of taste tests trended across social media when Cuthbert was introduced. This enraged M&S to such an extent they filed an intellectual property case to protect Colin’s honour (and their profits).

So – what is a copycat strategy? It is kind of in the name. If a brand hits gold with a new product in terms of sales, it won’t be long before competitors take note.  This strategy will see competitors improving on products that already exist, for example improving on the functionality or, in the case of Aldi, selling Cuthbert the caterpillar at a lower price of £4.99 compared to Colin the Caterpillar at £7.00.

Aldi is not the first supermarket to copy Colin.  Asda, Tesco, Sainsbury’s, Morrisons and Waitrose have all developed their own version as you can see below:

  • Sainsburys Wiggles - £6.00
  • Tesco’s Curly - £6.00
  • Waitrose’s Cecil - £7.00
  • Asda’s Clyde - £5.92

So why have M&S chosen to single out Aldi?  Perhaps it was Aldi’s blatant disregard for Colin the Caterpillar’s trademark – Cuthbert is almost identical in both packaging and colour.  Or was it the significantly lower price that led to this disagreement ending up in the courts? The M&S legal team claim the case is “a targeted approach to protect our brand assets”. They also claim that the “similarity of the products led customers to believe they are of the same standard” and “Aldi are riding on the coat tails of M&S’s reputation”.

You could also argue it was Aldi’s devil may care attitude when they took to social media to taunt M&S and undermine the seriousness of the trademark accusation with Tweets such as “Cuthbert has been found guilty…of being delicious” and, “Cecil, Wiggles, Curly, Clyde. We got you.” They even went as far as updating the packaging, showing Cuthbert locked in a prison cell and trended #freeCuthbert to the great delight of their followers on Instagram.

The battle has ended – for now.  In January 2022, M&S and Aldi reached a deal in which it was agreed Cuthbert would not appear on the shelves in quite the same form.  It remains to be seen if Aldi will stay on the right side of the law. Recent tweets hint they may not be taking it that seriously, with posts such as “Getting out on good behaviour, keep an eye out for Cuthy B in the Spring.” And “Cuthbert is free and looking forward to seeing all his fans again very soon." It will be interesting to see what Cuthbert looks like when he is allowed back in store and if Aldi has stopped its copycat ways – watch this space….!

-ends-

By Keri Lanyon, senior lecturer in business and management (apprenticeships), University of Wolverhampton Business School