California readers will recognize the name ‘Cuties,’ used in the marketing of tiny mandarin oranges grown in California and sold throughout the nation. Roll Global LLC, the owner of subsidiary Paramount Citrus, owned the brand of seedless mandarin oranges through a partnership with Sun Pacific, who was growing the fruit derived from a Spanish mandarin variety. Roll recently sold the trademark on the heels of a business dispute with one of the company’s marketing partners.

Paramount filed a lawsuit against SunPacific in 2012, alleging that Sun Pacific had diluted the ‘Cuties’ trademark. The dispute moved into arbitration in late 2012. In 2011-2012, more than 75 million boxes of Cuties were sold, up from an estimated 21 million boxes in 2005-2006.

With the sale of the ‘Cuties’ brand, Roll will continue to grow and market mandarin oranges, but will do so under the trade name ‘Wonderful.’ Roll already markets ‘Wonderful’ pomegranate juice, pistachios and almonds. The company recently acquired two major grapefruit growers, giving Roll approximately 70 percent of the grapefruit market.

As this case demonstrates, a California business dispute can lead to large-scale changes in the daily operations of the businesses involved. While there is no indication of what degree the existing arbitration influenced the decision to sell the ‘Cuties’ brand, there is no question that the litigation between the companies played some role in the matter. Understanding the various choices in how to handle a wide range of business disputes is an important aspect in the management of virtually any business entity. In this case, the ramifications of the decision to sell the brand and move forward with a new marketing approach may not be fully understood for years to come.

Source: Los Angeles Business Journal, “Roll Sells Mandarin Brand, Moves from Cute to Wonderful,” Tom Dotan, May 20, 2013