Lemon Factory, the Majorcan company that markets Pep Lemon, has lost its legal battle to use the name. The Balearic High Court has ruled in favour of PepsiCo, which had argued that the names were similar and that Pep Lemon would be able to benefit from a reputation (that of Pepsi) that had been acquired over decades.
Pep Lemon first appeared some three years ago. A few months after the launch of the lemonade, other drinks were introduced - Pep Toni (a tonic), Pep Orange and Pep Cola. It may have been the latter which really provoked Pepsi into registering its opposition to the name.
The makers of Pep Lemon have insisted that there is no confusion with the Pepsi name (Pep is, after all, a common male name in Catalan). Negotiations were entered into with Pepsi, but without success, meaning that the courts had to decide.
Lemon Company has ten days to appeal. If it doesn't, it will have to cease using the Pep name, although there could be a further appeal to the Supreme Court.