Aldi has a history of ruthless conflict with emerging brands. Their copycat approach has resulted in countless lawsuits. But now, the tides may be shifting and there are signs of change.

Let’s explore, in an article I’m calling…

Getting past the walled garden

Aldi’s business model as a low-cost, no-frills grocery stores heavily relies on treading the fine line between IP infringement and product imitation.

The private-label alternatives closely resemble popular branded products and give Aldi customers familiar choices at a fraction of the cost.

This knock-off approach typically leaves brands with two options:

1. Bid to supply the private label line and capture a tiny margin as a co-manufacturer

2. or get locked out altogether

But there is one example of a brand breaking through

BrewDog leveraged their challenger brand mentality to actually defend their business from Aldi’s knock-off attempt, without a legal battle.

Here’s how they did it

Aldi strikes first & launches the “Anti-establishment IPA”

Most companies would go into a panic, contact their lawyers and spend the next 6 months fretting with sleepless nights and panic attacks.

But that’s not very punk.

Instead, BrewDog returned serve

BrewDog claps back almost instantly

The day after Aldi announced their knockoff, BrewDog tweeted this to their 170K audience. Safe to say it caused a stir and a positive response from BrewDog fans.

A true collaboration was born

Aldi UK responded to BrewDog’s mockup with interest - so they teamed up to create an actual product. BrewDog announced to plant a tree for every pack sold. Remember this point…

Although Aldi continues to sell their knock-off, this method of response proved fruitful for BrewDog.

In a dynamic where most brands go the legal route (no one wins, just the lawyers), BrewDog turned what could have been a massive cost into a win. Both from a commercial and brand perspective.

Tony’s Chocolonely and Aldi’s Choco Changer

If you know the story of Tony’s Chocolonely, you’ll know they are on a mission to end child slavery in the supply chain of coca farming.

They also make delicious chocolate and are emerging as a global challenger to the heavily centralised chocolate industry.

Tony’s Open Chain is an initiative launched by Tony’s Chocolonely to expand the impact of its ethical sourcing beyond its own brand. They invite other chocolate brands and retailers to join the movement and create a fairer supply chain for all involved in farming of cocoa beans.

This is a different level of collaboration

Unlike BrewDog (which was a SpecialBuy line), the collaboration with Tony’s is deeper.

In true Aldi fashion, they’ve knocked off the overall brand ID and design vibe of Tony’s with a new sub-brand of their flagship chocolate brand, Choceur.

But this isn’t just a knock-off.

It features a very prominent design violator on the front of pack - an icon calling out “Tony’s Open Chain”.

Not only is this a good outcome for people and communities involved in Cocoa farming, but it’s an interesting precedent for brands.

You’ll recall the BrewDog collaboration came to life with a promise from BrewDog that they will drive a sustainability impact with the partnership.

And this move by Aldi to embrace co-branding from brands with purpose could be a signal for what’s to come.

What opportunities might this bring for emerging brands?

I have no idea of the commercial arrangement with Tony’s and Aldi - but I’m sure it’s favourable given Aldi has also been ranging the core brand product of Tony’s Chocolonely recently too.

If we decode these two partnerships, there are a few milestones brands will need to meet first:

1. Global supply chain capability

Both co-branding collaborations come from players who are emerging, but have passed the stage of ‘figuring out logistics’. You need the capacity for volume that a retailer like Aldi can bring.

2. Sustainable and ethical practices

Aldi has a growing focus on sustainability and ethical sourcing - these two partnerships highlight that commitment in unique ways.

3. A brand and a voice

Both BrewDog and Tony’s are incredibly clear on their brand positioning and how they exist in the world. They’ve built audiences of fans beyond just product users, and they are challenging the multinationals with an independent and disruptive business model.

If you can’t beat ‘em, join ‘em.

Although Aldi have lost legal battles in cases related to “lookalike” products, they win more often than not.

Which begs the question - is it worth it?

Morals and ego aside, it seems there are better ways to fight back.

What do you think? I’d love to hear your take.

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