PB&J Wars: Why Is Smucker Suing Chubby Snacks?

Earlier last week, The J.M. Smucker Company filed a lawsuit against crustless sandwich producer Chubby Snacks, accusing the startup of false advertising, trademark violations and disparagement in “years of advertising designed to tarnish the name and reputation” of Smucker’s competing Uncrustables brand.

What’s Happened So Far?

The lawsuit, filed September 16 in the U.S. District Court Northern District of Ohio Eastern Division, claims that Chubby has waged “a relentless assault on the fame and goodwill” of the Uncrustables trademark in numerous social media posts and other marketing materials, which allegedly implied that Uncrustables products are unhealthy and that Chubby is a “healthier version of Uncrustables.”

The suit cites Instagram and TikTok posts made by Chubby ranging from mild suggestions that its products are like “[U]ncrustables but better (for you)” to fairly strong attacks against Smucker’s brand, such as a March 2023 TikTok that said “Uncrustables are the scum of the earth of a food … and if you’re not eating the better for you option then you’re lame.”

These attacks, Smucker alleges, also constitute misuse and dilution of the Uncrustables trademark.

Uncrustables’ Peanut Butter and Strawberry Jam sandwiches contain 10 grams of sugar, 6 grams of protein and 210 calories per sandwich. In comparison, Chubby’s Peanut Butter and Strawberry Jam flavor contains 3 grams of sugar, 9 grams of protein and 240 calories per sandwich.

As for Chubby’s own products, the complaint alleges that the brand does not have grounds to call itself a healthy product and has made “false and misleading claims” on its packaging and in its messaging.

Smucker calls into question Chubby’s high protein callouts, alleging that the brand failed to include information about “protein quality” or the percentage of daily value for its protein on the Nutrition Facts panel, and suggesting it fails to meet the bar for high fiber and no added sugar.

The complaint also argues that Chubby’s grape and strawberry “jams” do not qualify as “jam” under the term’s standards of identity as ingredients like hydrated chia seeds, agave inulin and monk fruit extract don’t comply with federal standards.

“To expand its market share, Defendant makes unsupported and untrue statements about salient characteristics of the Chubby Products on its packaging and in advertising,” the complaint states. “Defendant’s false and misleading advertising positions the Chubby Snacks brand as a purportedly healthier alternative to Uncrustables sandwiches. But the Chubby Products are not, in fact, a healthier version, as they violate the [FDA’s] regulatory definition of ‘healthier.’”

Smucker alleged that Uncrustables, which reports over $650 million in sales, “suffered and continues to suffer substantial and irreparable harm” from Chubby’s claims, and is seeking damages and an injunction to prevent Chubby from marketing its products as healthier alternatives.

What’s the History Here?

Chubby Snacks was founded in 2020 and initially launched with a round, crustless peanut butter and jelly sandwich intended to be a better-for-you product, featuring ingredients such as wheat bread, almond butter, date powder and chia seeds.

In December of that year, Smucker sent Chubby a cease and desist letter, as the company owns a trademark on circular shapes for packaged crustless sandwich products.

That legal action prompted Chubby to relaunch with a cloud-shaped sandwich, however Chubby CEO Dillon Ceglio has since called Smucker’s move an attempt to stifle competition – a statement that is also now a point of contention in this new lawsuit.

Smucker initially began selling packaged crustless sandwiches in 1998 and the Uncrustables brand was adopted in 2000. The company initially received a trademark for its product design in 2002.

What Happens Next?

A summons was issued to Chubby Snacks on September 17th, but there have been no new filings in the case this week and Chubby has not yet issued a formal response to the complaint.

Chubby Snacks declined to comment to Nosh last week.