Duke's Mayonnaise sues Duke's Foods, claims company copied label colors, misleading customers

For nearly a century, the two sides of Eugenia Duke's original business coexisted. Then the spreads came. 

Duke's Mayonnaise is suing in North Carolina federal court three Upstate companies — Duke Sandwich Productions, DFP Sandwich Shops and Duke Brands — for alleged trademark infringement, unfair competition, false designation of origin and trademark dilution.   

"As the steward of this iconic and beloved brand, it is our responsibility to ensure that loyal Duke’s customers receive the unmatched quality and flavor they have come to expect in the 90 years," David Coburn, a spokesman for Duke's Mayonnaise said in a prepared statement. 

The companies share a common founder, Eugenia Duke, who invented a mayonnaise recipe and in 1917 began selling sandwiches for soldiers fighting in World War I. She sold the sandwich business in 1923 to focus on her mayonnaise product. Later, she sold the mayonnaise recipe and the Duke brand to C.F. Sauer Company in 1929.

While Duke's Mayonnaise grew popular in grocery stores, Duke Sandwich Company expanded to three Upstate restaurant locations. 

The defendants in more recent years began marketing and selling Duke sandwich spreads in grocery stores, the lawsuit states. Late last year, the defendants created a Duke logo for the spreads that looked like Duke's Mayonnaise black and yellow labeling, the lawsuit states. 

"Defendants are engaging in this conduct in order to confuse consumers into believing they are connected to the famous DUKE'S brand, therefore allowing Defendants' new packaged spreads and foods business to freeride off of the established and still rapidly growing national reputation of the DUKE'S brand," the lawsuit states. 

John Boyanoski, a spokesman for Duke Foods, said Duke's Mayonnaise had not previously expressed concern about the defendants' spreads until discussions began to sell the mayonnaise company to a private equity firm. 

"We continue to ask the question of why now," Boyanoski said in a prepared statement. "Sauer did not object when Duke Foods expanded into retail grocery more than a decade ago and Sauer then partnered with us on the 2017 celebration of the 100th anniversary of Eugenia Duke founding her company."

Sauer Brands, which was acquired by a Charlotte-based equity firm this summer, filed the suit in federal court late last week. 

"We were blindsided Friday evening when Falfurrias Capital Partners, the new private equity owners of the company manufacturing Duke's Mayonnaise, filed suit against us in federal court in North Carolina demanding we no longer use the name Duke," Boyanoski said. 

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The defendants have until late November to file a response to the lawsuit. 

Duke's Mayonnaise is asking in the suit for the defendants to change its name and branding so they less resemble each other as well as damages sustained by Duke's. 

"We plan to fight to keep our name and our brand," Boyanoski said. 

Duke Foods employs more than 300 people in Greenville, North Carolina and the Caribbean. Duke's Mayonnaise is manufactured in Mauldin and Kansas. The Mauldin factory employs 380 people. 

Haley Walters covers public safety, crime and breaking news. Email her at hwalters@gannett.com and follow her on Twitter @_haleywalters

Three months ago:Duke's Mayonnaise brand sold to Charlotte-based private equity firm