Page:Federal Trade Commission Decisions - Vol. 13.djvu/107

Rh 84 This concentrate is sold to bottlers for the purpose of making an imitation grape drink. Respondent acquired the formula for making “Grapico” and all rights in connection therewith, in the spring of 1926, from J. J. Crossman & Sons, a defunct corporation, which latter concern had been, since the year 1914, manufacturing said “Grapico” and selling and advertising the same as such extensively in interstate commerce.

“Grapico” was first made in the form of a syrup by respondent, and its said predecessor. It is now manufactured in the form of a concentrate. It was formerly shipped in barrels and is now shipped in gallon bottles from respondent’s plant in New Orleans, in the State of Louisiana, to various bottling works or companies located in several of the States of the United States.

Respondent, in the sale of “Grapico” concentrate, is in competition with Welch Grape Juice Co. and other corporations, copartnerships, and individuals making and selling real grape juice in interstate commerce, as well as with those corporations, copartnerships, and individuals making and selling in interstate commerce, imitations of grape flavor and color for the purpose of flavoring and coloring beverages under their respective brands or trade names.

Respondent has three customers residing outside of the State of Louisiana, who sell the finished beverage made from “Grapico” concentrate under the name “Grapico” and they are:

Grapico Bottling Works, Birmingham, Ala.

One company operating at Natchez, Miss.

One company operating at Picayune, Miss.

“Grapico” concentrate, when used as directed by respondent, produces an artificially-colored and artificially-flavored drink which tastes like, smells like, and resembles in color a drink made from grapes.

The amount of grape juice or fruit of the grape in “Grapico” is infinitesimal. These statements were made in the testimony of the president of respondent:

There would be hardly any grape juice in the finished beverage.

We do not claim grapico is made from grape juice or made from the fruit of the vine.

We claim that it is an artificially-colored and flavored grape drink.

“Grapico” concentrate sells for $7.50 per gallon. The finished “Grapico” beverage sells to the ultimate customer for 5 cents per 7-ounce bottle.