Bernatello's Pizza, Inc. v. Hansen Foods, LLC

173 F. Supp. 3d 790, 118 U.S.P.Q. 2d (BNA) 1623, 2016 WL 1180206, 2016 U.S. Dist. LEXIS 39772
CourtDistrict Court, W.D. Wisconsin
DecidedMarch 25, 2016
Docket16-cv-65-jdp
StatusPublished
Cited by1 cases

This text of 173 F. Supp. 3d 790 (Bernatello's Pizza, Inc. v. Hansen Foods, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bernatello's Pizza, Inc. v. Hansen Foods, LLC, 173 F. Supp. 3d 790, 118 U.S.P.Q. 2d (BNA) 1623, 2016 WL 1180206, 2016 U.S. Dist. LEXIS 39772 (W.D. Wis. 2016).

Opinion

OPINION & ORDER

JAMES D. PETERSON, District Judge

Plaintiff, Bernatello’s Pizza, Inc., brings claims of trademark infringement and unfair competition against defendant, Hansen Foods, LLC, Bernatello’s has federal trademark registrations for the word mark BREW PUB PIZZA and for a design mark that incorporates those words, both for use with frozen pizza. Bernatello’s contends that Hansen’s recently adopted BREWHAUS and BREW TIME marks infringe its rights, and Bernatello’s seeks a preliminary injunction.

The court held a day-long evidentiary hearing on the motion on March 18, 2016. Both sides presented evidence. Biased on the evidence presented at the hearing, and the documentary evidence submitted with the parties’ briefs, the court concludes that Bernatello’s is entitled to a preliminary injunction against Hansen’s use of marks that include the term “brew.” The court will ask the parties to submit, a proposed order for injunction that will provide an appropriate phase-out period to allow Han[794]*794sen to exhaust its inventory and to allow for an orderly change to a new brand name. The parties should also submit their proposals, jointly if possible, for an appropriate injunction bond.

FINDINGS OF FACT

The court must address a preliminary issue before setting out the findings of fact. The court’s rules for motions for in-junctive relief require the moving party to set out the factual basis , for the injunction in a statement of proposed findings of fact, and the party must cite evidence to support each proposed fact. See Procedure to be Followed on Motions for Injunctive Relief, available on the court’s website. If the party opposing the Injunction disputes any of the proposed facts, the opposing party must adduce evidence to put those facts in dispute.

Hansen did not properly oppose Berna-tello’s proposed facts because Hansen did not adduce evidence in opposition to them. Instead, Hansen objected to Bernatello’s facts on the grounds that it lacked sufficient knowledge, or on the grounds of unspecified deficiencies in the foundation for the evidence supporting the proposed fact. Establishing foundation is part of the moving party’s obligation, so the court would consider foundational objections, if they were specific and well-grounded. But Hansen’s objections were not specific.1 Berna-tello’s has amply supported its proposed facts with affidavit evidence, and Hansen’s foundational objections are overruled. Ber-natello’s proposed facts, Dkt. 14, are deemed established.

Hansen’s own proposed findings of fact in opposition to the motion were not authorized by the court’s injunction procedures, because replies are not authorized, and thus the moving party has no opportunity-to respond to facts proposed by the non-moving party. The court will nevertheless regard some of Hansen’s proposed factual background as established because Bernatello’s did not dispute those facts at the hearing. '

Based on the parties’ written submissions and the evidence presented at. the hearing, the court finds the following facts.

Bernatello’s Pizza, Inc., is a Minnesota corporation with its corporate headquarters in Edina, Minnesota. Bernatello’s has manufactured and distributed frozen pizzas since 1982. Among the Bernatello’s brands are Bellatoria, Orv’s, and Roma, in addition to Brew Pub Pizza, the brand at issue in this litigation. Bernatello’s brands vaiy in' price, quality, and packaging to target distinct consumer groups. Brew Pub Pizza is in the “premium” (sometimes referred to as “super-premium”) category of frozen pizza. The premium category is characterized by abundant high-quality toppings, particularly a large amount of cheese. Pizzas in the premium category generally retail for $9 to $11.

Bernatello’s introduced Brew Pub Pizza in 2012. Bernatello’s engaged Tom Jacob-sen, an independent consultant with extensive industry experience’ in frozen foods, particularly pizza, to assist with its creation of a new pizza brand. Jacobsen identified the premium category as one likely to experience growth, whereas down-market segments of the frozen pizza market were stable or shrinking. In early 2012, Jacobsen came up with the name “Brew Pub” for a Bernatello’s brand because it [795]*795would capitalize on the growing interest in craft beer.

As it was later designed and executed, the Brew Pub Pizza packaging includes a design of a keg tap to reinforce the craft beer' and pub associations. The Brew Pub Pizza packaging also displays the term “Lotzza Motzza” as a prominent element. Brew Pub Pizza uses high quality ingredients, including sausages that contain no fillers, and real Wisconsin cheese grated into wider strips than commonly used on frozen pizzas. The retail price of a Brew Pub Pizza is ordinarily $10.99, but on special promotions it may be priced as low as $5.99, Brew Pub Pizzas are manufactured in twelve varieties in a multi-serving portion size and five varieties in single-serving size's. Each Brew Pub Pizza is sealed in a clear wrap with a small circular label on the top center of the pizza, a format known as “bullseye” packaging. Bullseye packaging allows consumers to see the pizza ingredients, which is considered an advantage for premium pizza.

Bernatello’s has three federal trademark registrations pertinent to this case:

BREW PUB PIZZA (words only); U.S. Reg. No. 4,373,576; application date June 29, 2012; registration date July 23, 2013;
BREW PUB PIZZA and design; U.S. Reg. No. 4,431,990; application date March 21, 2013; registration date November 12,2013;
BREW PUB; U.S. Reg. No. 4,906,320; application date April 10, 2014; registration date February 23, 2016.

Bernatello’s also has several applications pending for related terms, including IT’S BREW TIME, ' BREW, and PUB, although these applications were made after the current dispute arose, and thus they have no bearing on the issues before the court.

Bernatello’s markéts its frozen pizzas using a “direct store delivery” model, in which it uses its own personnel and fleet of trucks to deliver products directly to grocery stores. It uses an independent distributor for whát it calls “small format” retailers, primarily convenience stores and taverns.

Brew Pub Pizza has been commercially successful: in 2013, Bernatello’s sold 2.4 million units, generating $12.8 million in revenue; in 2014, 4.8 million units, producing $24.6 million in revenue; and in 2015, 7.8 million units, representing $39.8 million in revenue. In the year ending September 2015, Bernatello’s Brew Pub Pizza was a top-ranked brand among all frozen pizza brands in the Midwestern market.

At the time of its introduction in 2012, Brew Pub Pizza was the only premium frozen pizza sold or promoted as a “pub-style” or “tavern-style” pizza. No other frozen pizza was marketed with the term “Pub” or “Brew” on its packaging. However, since the introduction of Brew Pub Pizza, several competitors have marketed premium pizza as either tavern-style pizza (Green Mill Restaurant, Defense Ex. 2) or pub-style pizza (P’Mos Pub Pizza Co., Defense Ex. -3; Luige’s Big Daddy,- Defense Ex. 4).2

Hansen Foods, LLC, is a Wisconsin limited liability company with a principal place of business in Green Bay, Wisconsin. Hansen was founded in 1912 as a dairy delivery business, and its business has expanded to include private label pizza manufacturing.

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Bluebook (online)
173 F. Supp. 3d 790, 118 U.S.P.Q. 2d (BNA) 1623, 2016 WL 1180206, 2016 U.S. Dist. LEXIS 39772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernatellos-pizza-inc-v-hansen-foods-llc-wiwd-2016.