An application from US food major Kraft Heinz for a right of appeal in a legal dispute with Bega Cheese has been rejected by a high court in Australia.

The spat between the two food manufacturers has been going on for months over the right for Sydney-listed Bega Cheese to continue to use the yellow lid and labels on its peanut butter under a previous licensing agreement between Kraft Heinz and Mondelez International.

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Mondelez sold a clutch of assets in 2017 to Bega, including the Vegemite brand, which were still part of the agreement between the two US firms at the time.

However, Kraft Heinz has argued the packaging is too similar to its own and claims Bega only had the rights to use the packaging until the end of 2017.

In May, Bega received a notice that Kraft Heinz had applied for an application for a so-called special leave to appeal to the Full Court of the Federal Court of Australia against a decision made in the Australian company’s favour in April, granting Bega the “right to continue to use the current packaging of its smooth and crunchy peanut butter products”. 

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But Kraft Heinz’s May appeal for a Special Leave Application has been dismissed today (13 November) as well by the court.

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“This decision by the High Court today confirms Bega Cheese’s right to use the current packaging of its smooth and crunchy peanut butter products,” the Australian company noted in a statement.

“The dismissal of the Special Leave Application means that the decision of the Full Court of the Federal Court of Australia handed down in April this year on this issue will stand. Bega Cheese looks forward to continuing to produce and supply our customers with our much-loved peanut butter products.”