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Rebel Creamery: The Keto Ice Cream Company Facing Bankruptcy
The popular low-carb ice cream brand Rebel Creamery recently filed for Chapter 11 bankruptcy. The Utah-based company, known for their healthy, zero-sugar ice cream pints, had to take this step after losing a trademark lawsuit to another ice cream company, Van Leeuwen.
Why is Rebel Creamery Filing for Bankruptcy?
Rebel Creamery, a favorite among keto diet followers for its sugar-free ice cream pints, found themselves in hot water after a lawsuit filed by Van Leeuwen. The lawsuit accused Rebel of copying their packaging style, leading to consumer confusion. The lawsuit demanded remuneration for sales made from the disputed packaging and also asked Rebel to change their packaging design.
Judgment in the Rebel Creamery Vs Van Leeuwen Lawsuit
The lawsuit was handled by Judge Eric Komitee who ruled in favor of Van Leeuwen. He agreed that Rebel Creamery had intentionally copied Van Leeuwen’s branding which resulted in a trademark violation. Consequently, Rebel Creamery was ordered to redesign its ice cream packaging and pay Van Leeuwen approximately $23.785 million in profits made from the sale of the disputed packaging.
Undeterred, Rebel Creamery took the matter to the U.S. Court of Appeals in an attempt to overturn the verdict. “We are appealing the decision, and our products will continue to be widely available,” the company announced on Aug. 17.
More About Rebel Creamery
Founded by a Utah-based family in 2017, Rebel Creamery was born out of the desire for a keto-friendly ice cream. Their ice cream is high in fat but low in sugar, making it a hit among health-conscious and keto diet followers. They currently offer 21 different flavors sold in pints or cases, which are available nationwide. The founders of Rebel designed the packaging themselves, claiming they had never seen Van Leeuwen’s packaging before doing so.
More About Van Leeuwen
Van Leeuwen started as an ice cream truck in New York in 2008. The company, which focuses on making ice cream with simple ingredients and vegan options, redesigned its packaging in 2014 with the help of a design agency. The resultant packaging design, which hit stores in 2017, became the bone of contention in the lawsuit against Rebel Creamery.
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