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The owners of Haleiwa’s oldest restaurant are suing a meat company owned by an Idaho billionaire in federal court for allegedly using their trademark to promote beef products in Hawaii.
Kua ‘Aina Sandwich Shop, founded in 1975 and federally trademarked in 1992, is accusing Honolulu Meat Co. LLC of federal trademark infringement and unfair competition. Honolulu Meat Co. LLC is allegedly “using the mark Kua ‘Aina to “promote and sell packaged ground beef, hamburger patties, and other cuts of beef” sold in grocery stores and restaurants, according to the federal civil complaint.
Honolulu attorney Paul Alston, who is listed as the business agent for Honolulu Meat Co. LLC, declined comment.
The meat company lists an Idaho Falls address and is a subsidiary of Riverbend Management Inc., a holding company controlled by Frank VanderSloot, who according to Forbes has a net worth of $3.2 billion and is among the 400 wealthiest people in the country.
VanderSloot owns Hawaii Sustainable Beef Enterprises, incorporated on April 21, 2020.
According to a Feb. 24, 2021, editorial by Bobby Farias, president of Hawaii Meats LLC; Scott Enright, former Hawaii Department of Agriculture chairman, and a consultant to Hawaii Meats LLC; and Zanga Schutte, a third-generation rancher on Hawaii island, VanderSloot’s operation processed 1 million pounds of beef in 18 months and that VanderSloot “believes in “keeping the workforce in place and ensuring that the ranching community won’t have to face an inventory issue.”
Honolulu Meat is using Kua ‘Aina in connection with the “sale of ground beef and other meat products in a manner that is likely to cause consumer confusion as to the source or origin of Honolulu Meat’s products, or as to whether Honolulu Meat and its goods are affiliated with, related to, or sponsored or endorsed” by the owners of Kua ‘Aina Sandwich Shop, according to the complaint, filed Wednesday in federal court.
The sandwich company is seeking a “permanent injunction, compensatory damages, treble damages for willful infringement and unfair and deceptive trade practices, and attorneys’ fees.”
“Kua ‘Aina has worked very hard for many years to build its name, reputation and brand, and we can’t let someone think they can just waltz in and start profiting off that hard work just because they have a bottomless wallet,” said Jim Bickerton, attorney for Kua ‘Aina, in a statement. “Might does not make right, and Kua ‘Aina will defend what it has worked for 47 years to build up in our local community.”
VanderSloot made his money with Melaleuca, a multilevel marketing company that sells more than 400 products, from nutritional supplements to eco-friendly household cleaners, according to Forbes. Honolulu Meat Co. was incorporated March 3, 2021, as a domestic limited liability company, according to records kept by the Business Registration Division of the state Department of Commerce &Consumer Affairs.
It is “engaged in the distribution and sale of packaged ground beef, various whole cuts, and other butchered beef products to retail grocery stores in Hawaii,” according to the federal civil complaint.
By using the mark Kua ‘Aina and the name Kua ‘Aina Ranches, VanderSloot’s company “has used a design, color scheme and font that increases the likelihood of confusion,” according to the complaint.
The local sandwich company has developed “significant goodwill” and “significant consumer recognition” as the source of “high quality food products and restaurant services,” according to the complaint. Founded and run by North Shore resident Terry Thompson, the company licensed the right to use the Kua ‘Aina marks in connection with restaurant services in over 30 locations including Japan, England, and Taiwan.
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