Eddie Stobart is one of the many brands we’re familiar with in the UK. The instantly recognisable red and green lorries have been part of the landscape of our motorways since 1960, but the iconic name may be lost to the trucking firm.
The branding could be a thing of the past as the trade mark agreement for the name is now up for renegotiation – at a price of up to £50 million.
Potential redesign
The huge cost could mean a whole redesign, according to the CEO of Eddie Stobart Logistics (ESL), Alex Laffey. He warned that they may choose to get rid of the name or merge it with another part of the company’s services: “We are passionate about our name and the leading brand, however, we also recognise that following the introduction of our new strategy and recent acquisitions, we need to review our position given the broader range of supply chain services we now offer.”
There’s an army of Eddie Stobart fans (known as ‘Stobart spotters’) who spend their time spotting lorries and updating records. According to speculation from these enthusiasts, a possible new name for the fleet of lorries could be ‘iForce’, which is the name used for ESL’s e-commerce brand. However, the press office of ESL has denied this will be the case.
Why is this happening?
Eddie Stobart’s parent company (Stobart Group) became a PLC in 2007. The company changed its focus towards renewable energy and airports, finally splitting from the lorry business in 2017. The lorry business subsequently became Eddie Stobart Logistics the same year. When this separation occurred, the rights to the brand name Eddie Stobart were retained by the Stobart Group, which licenced the right to use to ESL. And it’s this agreement that’s up for renegotiation.
The Stobart Group also retained a 12.5% stake in the lorry firm. ESL can keep the name for £3 million a year, acquire use in the UK in perpetuity for £15 million or buy exclusive use for £50 million. And while ESL made a profit of £10 million in 2017, whether they will want to spend this much is not yet clear.
Pubic attachment
Some argue that there is a real attachment to the name in the UK, and that losing it would be disastrous for the firm. However, given that the company has branched out and has a new strategy, this isn’t necessarily the case.
An ESL spokesperson said: “The Board is committed to reviewing all options and will ensure it considers the views and interests of its people, customers and shareholders before deciding on the best way forward.”
This is one of the thousands of fascinating Intellectual Property (IP) cases that affect major brands every day. As a patent attorney, trade mark attorney or support staff within IP law, you’ll be at the cutting edge of major changes to brands we all recognise. If you require our recruitment services, contact the team at Dawn Ellmore Employment for more information.