Glenora Distillers International Ltd. wins fight against the Scotch Whisky Association over the name of its single malt whisky

Susan Krashinsky

Globe and Mail Update, Thursday, Jun. 11, 2009 04:19PM EDT 

They’re celebrating at the offices of a small Cape Breton distillery after winning a nine-year legal battle over the name of its single malt whisky.

“We’re celebrating now,” Bob Scott, vice-president of Glenora Distillers International Ltd. of Glenville, N.S., said Thursday after a decision by the Supreme Court of Canada put an end to the distiller’s fight with the Scotch Whisky Association. “I have a wee dram of Glen Breton in my hand as we speak.”

The Supreme Court refused to hear an appeal of a lower court decision to allow the distillery to use the word “Glen” in the name of its Glen Breton Rare whisky.

The Scotch Whisky Association has said the name creates confusion in the market by implying a connection to household names in Scotch whisky, such as Glenlivet and Glenfiddich.

The association submitted evidence to the court that showed Glen Breton being described as Scotch whisky in Canada, such as on menus and on price lists at some provincial liquor boards.

“Glenora has marketed its product as Scotch in all but name,” said David Williamson, a representative for the association. “The market was confused by that trademark.”

According to Mr. Williamson, there is international precedent that the use of “Glen” on a whisky not produced in Scotland is a form of unfair competition.

The Scots have good reason to defend their brand: Scotch whisky is sold in almost 200 countries internationally and is Scotland’s largest export. It also represents 25 per cent of the United Kingdom’s food and drink exports, according to the Scotch Whisky Association.

Mr. Williamson said this success is based on a strong international reputation, and any product that adopts a Scottish-sounding name is taking unfair advantage of that worldwide brand recognition.

But Glenora Distillery’s Mr. Scott argues Glen Breton has a fair claim to its moniker.

“We’re in a glen,” Mr. Scott said. “We’re in Glenville, we’re in Cape Breton, and that’s where the name came from.”

Now that the Supreme Court has made its decision, Glen Breton will be registered as a trademark in Canada.

The legal battle started with the company’s initial application for the “Glen Breton” trademark in 2000.

The case went through four levels of court challenges. In January, the Federal Court of Appeal approved its trademark registration, which prompted the Scotch Whisky Association to take its appeal to the Supreme Court.

Mr. Scott would not comment on exactly how much this battle has hurt his small company, but he said that aside from legal costs, the fear of further challenges has prevented the distillers from marketing Glen Breton in some countries overseas.

“Now we can do whatever we like, moving forward with our brand name,” Mr. Scott said, adding that the exposure Glenora has received as a result of the case has been helpful. “It gives us brand recognition, which helps us out.”

The company is now planning to market Glen Breton in Asia, with future plans for expansion into Europe.

The Scotch Whisky Association has vowed to keep fighting against expansion of the Glen Breton brand into international markets, but for now there is a party going on at offices of the Nova Scotia distillery.

“It’s a really huge victory for us,” Mr. Scott said. “We’re celebrating – and I have a designated driver for tonight.