WILLEMSTAD – Kortijn Ice Company has announced changes to the recipes and prices of several of its products after reviewing its operations following the acquisition of assets from the bankrupt Lovers ice cream factory. The company says its products now contain less sugar and more fruit, while higher operating expenses have also prompted price adjustments.
The announcement is notable because a Curaçao court earlier this month prohibited Kortijn from creating the impression among consumers that its products are a continuation, improved or otherwise, of products previously sold under the Lovers brand.
Kortijn announced the latest changes in an advertisement that also introduces new packaging for its products.
According to the company, following the acquisition it conducted a comprehensive review of its “formulas, cost structure and prices.” Kortijn says it subsequently decided to improve the quality of its products, specifically by reducing sugar and increasing fruit content.
At the same time, prices for several products are being adjusted because of rising operating expenses, including electricity, water and fuel costs.
The wording comes against the background of a legal dispute between Kortijn and Lovers Industrial U.S.A. LLC (Liusa).
Kortijn acquired assets belonging to the bankrupt Lovers Industrial Corporation earlier this year and subsequently continued operations with a large portion of the former company's workforce.
On September 8, the court ruled that Kortijn may not make statements that could lead consumers to believe its products are “a continuation, whether improved or otherwise,” of products previously sold under the Lovers brand.
The court also prohibited slogans and other marketing elements that created a direct association with Lovers. Violations of the ruling can result in a penalty of XCG 5,000 per day, up to a maximum of XCG 500,000.
Kortijn's latest advertisement does not mention Lovers by name and does not use the references to “love” or the heart symbol that were previously disputed in court.
However, the company does itself connect the acquisition with its subsequent review of product formulas and the decision to improve its products.
Whether that wording violates the September 8 ruling has not been established.
The earlier court ruling did not prohibit Kortijn from using the former Lovers recipes. The court rejected Liusa's request for such a prohibition after Kortijn maintained that it had developed its own recipes and Liusa was unable to demonstrate during the preliminary proceedings that Kortijn was actually using Lovers recipes.
Kortijn also addressed the pricing of its products, noting that ice, ice cream and juices are not subject to government price controls.
Nevertheless, the company says it has provided its official price list to the Economic Inspection Department of the Ministry of Economic Development and to consumer organization Fundashon pa Konsumidó.
The new pricing and packaging mark another step in Kortijn's effort to establish its own product identity following the takeover, while the company remains bound by the court-imposed restrictions on associating its products with the former Lovers brand.