Smucker, Chubby Snacks Settle Trademark Suit

The J.M. Smucker Company has settled its lawsuit accusing now-defunct frozen sandwich startup Chubby Snacks of false advertising, trademark violations and disparagement in “years of advertising designed to tarnish the name and reputation” of Smucker’s competing Uncrustables brand.

An Ohio federal judge signed an order on Monday permanently closing the case, according to a report from Law360.

The lawsuit, filed last September in the U.S. District Court Northern District of Ohio Eastern Division, claimed that Chubby Snacks and its team had 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 cited Instagram and TikTok posts made by Chubby Snacks 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 TikTok post 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.”

Chubby Snacks ceased operations earlier this year after four years in business. The company had raised a total of $3.5 million by the end of 2022. The following year, Chubby Snacks installed its production line, dubbed the Chubb-O-Matic, which increased capacity from 120,000 units per month to more than 2 million, using bread from a local bakery delivering fresh loaves daily. After transitioning to the new machines, the brand launched reformulated sandwiches and debuted its first-ever marketing campaign.

The company was unable to overcome the financial toll of increased competition, rising costs, limited capital and inflationary pressures, as well as the legal pressures it faced in the months prior to its shutdown. On the heels of the Smucker suit, Chubby Snacks was hit with a class action complaint alleging the company mislabeled the amount of sugar in its sandwiches.

Competition continues to heat up in the frozen sandwich category, drawing new entrants in recent years, including Rudi’s, Red’s and SunButter, as well as private label players, vying for limited shelf space in the set and seeking to topple category leader Uncrustables, a nearly $1 billion brand. Earlier this month, newcomer Jams debuted its high-protein peanut butter and jelly sandwiches in more than 3,000 Walmart stores nationwide.