A fight for the manufacture and distribution of children’s juice brand Squishy has gone to the Court of Appeal with one of the companies arguing that a High Court ruling effectively allowed two parties rights over the same trademark.
Squishy Drinks Limited (SDL) has accused Kevian Kenya Limited of practising a hostile takeover and engaging in acts of economic sabotage by selling its products to retailers at 33 percent below the normal price.
Squishy Drinks Limited said in documents filed in the court allowing Kevian to continue packaging and distributing the products for 90 days as Justice Mary Kasango directed, would continue damaging its brand.
The two companies entered into an asset purchase agreement where Squishy Drinks Limited transferred the Squishy trademark to Kevian.
But in an affidavit, Squishy Drinks Limited’s director Evelyn Wairimu said the agreement is a nullity because no consent was obtained from the Competition Authority Kenya as required by law.
She said they decided to terminate the deal after Kevian failed to fulfill its part of the bargain but Justice Kasango ignored all the issues they raised in her ruling on December 4.
“That the said ruling implied that 100 percent of the assets of Squishy Drinks Limited have been transferred to Kevian Kenya Limited ignoring the fact that the appellant’s trademark was never transferred to the respondent, neither did the respondent make all the necessary payments and approvals as agreed,” Ms Wairimu said in an affidavit.
The two companies had agreed in 2018 to create a new entity to sell the juices targeting young consumers.