Ad campaign benefitted rival — GSMI

Industry leader Ginebra San Miguel, Inc. (GSMI) chided rival Tanduay Distillers, Inc. (TDI) for allegedly getting a "free ride" from its massive advertising campaign for flagship product Ginebra San Miguel "bilog" and its variants when the latter launched Ginebra Kapitan.

GSMI stressed the allegation before the Court of Appeals (CA), saying to allow TDI to use "Ginebra" in the Kapitan brand would enable it "to unfairly benefit from the popularity of the original Ginebra product."

GSMI earlier disclosed a market study which showed an apparent confusion among most gin drinkers who mistakenly believe that Kapitan is also a product of GSMI, San Miguel or La Tondeña. The research, done by renowned market study expert Mercedes Abad, also allegedly showed that most gin drinkers associate the word "Ginebra" with GSMI, San Miguel, La Tondeña and the products of these companies.

GSMI lead counsel Gilbert Reyes of the Poblador, Bautista and Reyes law offices said the "free ride" for TDI allows it to forego "with the need to invest millions of pesos of its own in marketing and advertising Ginebra Kapitan precisely because it carries GSMI’s popular "Ginebra" name.

Reyes said TDI itself acknowledged that GSMI has already spent some P178.2 million from January to July of this year to advertise Ginebra San Miguel while TDI spent a measly P2.6 million during the same period to promote Ginebra Kapitan.

In fact, GSMI and its predecessors have already invested billions of pesos over a period of over 170 years to build the goodwill now enjoyed by the "Ginebra" mark, Reyes added.

TDI wants to reap what it has not sowed, Reyes said. This is the very crux of unfair competition, he pointed out.

The CA is currently studying GSMI’s plea to have a temporary restraining order against the lower court hearing its P100- million suit against TDI lifted. GSMI earlier sued TDI for trademark infringement and unfair competition.

The Mandaluyong City Regional Trial Court had also earlier issued a writ of preliminary injunction stopping TDI from making and selling Ginebra Kapitan while the case is being heard.