Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 1 of 223
`
`
`
`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF TEXAS
`SAN ANTONIO DIVISION
`
`
`Plaintiffs,
`
`NESTLÉ USA, INC. AND
`SOCIÉTÉ DES PRODUITS
`NESTLÉ S.A.,
`
`
`
`
`vs.
`ULTRA DISTRIBUCIONES
`MUNDIALES S.A. DE C.V. AND
`ULTRA INTERNATIONAL
`DISTRIBUTORS, INC.,
`
`
` Defendants.
`
`
`
`
`
`
`Civil Action No.: 5:20-cv-00384-OLG
`
`
`
`
`PLAINTIFFS NESTLÉ USA, INC.’S AND SOCIÉTÉ DES PRODUITS NESTLÉ S.A.’S
`PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW
`
`
`
`
`
`
`
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 2 of 223
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`TABLE OF CONTENTS
`
`
`I.
`
`C.
`D.
`
`Page
`PROPOSED FINDINGS OF FACT .................................................................................. 1 
`A.
`SPN Owns Valid, Registered Trademarks—the Nestlé Marks ............................. 1 
`B.
`Products at Issue .................................................................................................... 1 
`1.
`Abuelita ...................................................................................................... 2 
`2.
`Carnation .................................................................................................... 6 
`3.
`La Lechera ............................................................................................... 10 
`4.
`Media Crema ............................................................................................ 18 
`5.
`Nescafé ..................................................................................................... 22 
`6.
`NIDO........................................................................................................ 27 
`Ultra’s Illegal Grey Market Product Business ..................................................... 36 
`Ultra Recognizes That the Nestlé Mexico Products Are Grey Market
`Goods ................................................................................................................... 38 
`Relevant FDA Regulations Related to Food Label Information ......................... 39 
`The Differences Between the Authorized and Unauthorized Grey Market
`Products................................................................................................................ 41 
`1.
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized and
`unauthorized Abuelita products ............................................................... 43 
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized and
`unauthorized Carnation products ............................................................. 52 
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized and
`unauthorized La Lechera products ........................................................... 61 
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized and
`unauthorized Media Crema products ....................................................... 75 
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized and
`unauthorized Nescafé products ................................................................ 87 
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized and
`unauthorized NIDO products ................................................................... 96 
`
`E.
`F.
`
`2.
`
`3.
`
`4.
`
`5.
`
`6.
`
`i
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`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 3 of 223
`
`TABLE OF CONTENTS
`(continued)
`
`Page
`
`7.
`
`8.
`
`9.
`
`10.
`
`Differences in labels, product composition, and/or failure to
`comply with FDA regulations between the authorized NUSA
`products and the unauthorized Nestlé Mexico Products matter to
`consumers. ............................................................................................. 122 
`Differences in post-sale services between the authorized NUSA
`products and the unauthorized Nestlé Mexico Products ........................ 127 
`Differences in prices between the authorized NUSA products and
`the unauthorized Nestlé Mexico Products ............................................. 130 
`Summary of differences between the authorized NUSA products
`and the unauthorized Nestlé Mexico Products matter to consumers. .... 131 
`Plaintiffs Demonstrated Actual Confusion Between the Authorized and
`Unauthorized Grey Market Products ................................................................. 132 
`The Similarities Between the Authorized and Unauthorized Grey Market
`Products.............................................................................................................. 133 
`Plaintiffs Have Worked To Reduce The Sale in the U.S. of Grey Market
`Products From Mexico ....................................................................................... 134 
`1.
`NUSA Have Sent Numerous Cease and Desist Letters To Grey
`Market Entities, Including to Ultra ........................................................ 134 
`Plaintiffs’ Filing of This and Other Lawsuits Against Grey Market
`Importers/Sellers .................................................................................... 135 
`Plaintiffs Worked Diligently with Nestlé Mexico to Reduce the
`Importation and Sale of the Nestlé Mexico Products ............................ 137 
`Ultra’s Unauthorized Use and Sales of the Nestlé Mexico Products................. 138 
`1.
`Neither Plaintiffs Nor Nestlé Mexico Authorized or Permitted
`Ultra to Use the Nestlé Marks ................................................................ 138 
`Ultra’s Overlapping Advertising of Nestlé Mexico Products with
`NUSA’s Advertising of the Authorized Products .................................. 139 
`Ultra’s Sales of the Nestlé Mexico Products ......................................... 139 
`3.
`Ultra’s Continued Sales of the Nestlé Mexico Products Despite Repeated
`Notice That It Was Not Authorized To Do So .................................................. 143 
`Evidence of the Impact to NUSA’s Financial Position from Ultra’s
`Importation and Sale of the Nestlé Mexico Products ........................................ 144 
`1.
`Ultra’s Direct Sales to NUSA Customers .............................................. 145 
`2.
`Ultra’s Indirect Sales to NUSA Customers ........................................... 147 
`3.
`Evidence from Settlements with Distributors of Nestlé Mexico
`Products.................................................................................................. 153 
`
`G.
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`H.
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`I.
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`J.
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`K.
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`L.
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`2.
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`3.
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`2.
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`ii
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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 4 of 223
`
`TABLE OF CONTENTS
`(continued)
`
`Page
`NUSA’s Analyses of the Impact of Unauthorized Imports ................... 155 
`4.
`Plaintiffs Have Provided Evidence that the Brands at Issue Bearing the
`Nestlé Marks Are Valuable, and Ultra’s Actions May Have Harmed Their
`Value .................................................................................................................. 158 
`1.
`The Brands at Issue Are Valuable ......................................................... 159 
`2.
`Ultra’s Misconduct May Have Harmed the Value of the Brands at
`Issue ....................................................................................................... 169 
`FDA’s Border Inspection Practices ................................................................... 170 
`N.
`PROPOSED CONCLUSIONS OF LAW ...................................................................... 172 
`A.
`Plaintiffs Have Proven Their Trademark Infringement, 15 U.S.C. §
`1114(1) Claim (Plaintiffs’ Claim 1). .................................................................. 172 
`1.
`Ownership of the Nestlé Marks. ............................................................ 172 
`2.
`Material Differences Test ...................................................................... 173 
`3.
`Traditional Likelihood of Confusion Test ............................................. 179 
`Plaintiffs Have Proven Their False Designation of Origin and Unfair
`Competition, 15 U.S.C. § 1125(2) Claim (Plaintiffs’ Claim 2) ......................... 183 
`Plaintiffs Have Proven Their Common Law Unfair Competition Claim
`(Plaintiffs’ Claim 8) ........................................................................................... 188 
`Plaintiffs Have Proven Their Trademark Dilution, 15 U.S.C. § 1125(c)
`Claim (Claim 3) ................................................................................................. 189 
`Plaintiffs Have Proven Their Trademark Dilution, Tex. Bus. & Com. Code
`Ann. § 16.103 Claim (Plaintiffs’ Claim 4) ........................................................ 195 
`Plaintiffs Have Proven Their Trademark Dilution, Cal. Bus. & Prof. Code
`§ 14247 Claim (Plaintiffs’ Claim 5) .................................................................. 197 
`Plaintiffs Have Proven Their Unfair Competition, Cal. Bus. Prof. Code §§
`17200 Et Seq. Claim (Plaintiffs’ Claim 6) ......................................................... 199 
`Plaintiffs Have Proven Their Unfair Competition by Misappropriation
`Claim (Plaintiffs’ Claim 7) ................................................................................ 203 
`Ultra Has Failed To Prove Any Of Its Affirmative Defenses ............................ 205 
`1.
`Ultra Has Failed To Prove Its Acquiescence Affirmative Defense ....... 205 
`2.
`Ultra Has Failed To Prove Its Laches Affirmative Defense .................. 208 
`3.
`Ultra Has Failed To Prove Its Waiver Affirmative Defense .................. 213 
`4.
`At Most, Plaintiffs Revoked Any License and the Court Should
`Still Grant Plaintiffs Equitable and Monetary Relief ............................. 215 
`
`M.
`
`B.
`
`C.
`
`D.
`
`E.
`
`F.
`
`G.
`
`H.
`
`I.
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`iii
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`II.
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`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 5 of 223
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`PROPOSED FINDINGS OF FACT
`
`Pursuant to Local Rule CV-16(f)(8), Plaintiffs set forth the following proposed findings of
`
`
`
`I.
`
`fact:
`
`A.
`
`SPN Owns Valid, Registered Trademarks—the Nestlé Marks
`
`1. SPN is the owner and registrant of the six trademarks at issue—Abuelita, Carnation,
`
`La Lechera, Nescafé, Nestlé, and NIDO (the “Nestlé Marks”).
`
`2. Each of the Nestlé Marks is valid and registered with the U.S. Patent and Trademark
`
`Office (“PTO”).
`
`3. SPN has licensed the Nestlé Marks to NUSA through a General License Agreement
`
`(GLA), which includes a territorial provision that gives NUSA the exclusive right to use and sell
`
`Nestlé trademarked products at issue in the U.S.
`
`4. SPN has licensed the Nestlé Marks to non-party Nestlé Mexico through a General
`
`License Agreement (GLA), which includes a territorial provision that gives Nestlé Mexico the
`
`exclusive right to use and sell Nestlé trademarked products at issue in the Mexico.
`
`B.
`
`Products at Issue
`
`5. NUSA sells Nestlé food and beverage products throughout the United States, and
`
`is responsible for the marketing, distribution, and sale of such products.
`
`6. NUSA contracts with non-party Nestlé Mexico and other foreign Nestlé affiliates
`
`to manufacture—according to U.S. law, regulations, and consumer preferences—versions of the
`
`relevant products, bearing the Nestlé Marks, for NUSA’s distribution in the United States.
`
`7. Nestlé Mexico also manufactures, according to specifications for the Mexican
`
`market, and sells Nestlé products intended for sale in Mexico (hereafter the “Nestlé Mexico
`
`Products”) that bear the same Nestlé Marks as the Nestlé products intended for sale in the U.S.
`
`8. When manufactured and sold by Nestlé Mexico to its customers, the Nestlé Mexico
`
`1
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 6 of 223
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`
`
`Products have labels printed only in Spanish.
`
`9. The Nestlé Mexico Products, as imported and ultimately sold by Ultra International,
`
`have additional stickers affixed to the product labels that, for example, provide some dual
`
`translation (English and Spanish) of information on the original all-Spanish label.
`
`10. The Nestlé Mexico Products are not identical to the Nestlé products intended for
`
`sale in the U.S.
`
`11. The Nestlé Mexico Products bear the same Nestlé Marks as the products bearing
`
`the Nestlé Marks that NUSA distributes in the U.S.
`
`1.
`
`Abuelita
`
`12. A representative authorized NUSA Abuelita product sold in the U.S. during the
`
`relevant time period looks like this:
`
`
`
`
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`
`
`
`
`2
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 7 of 223
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`
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`
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`
`
`See P-1, NUSA-Ultra00227626-28, NUSA-Ultra00227630, NUSA-Ultra00227632-33, NUSA-
`
`Ultra00227635 (pictures of an authorized Abuelita sample from 2022); PPE-1.
`
`13. The Abuelita Nestlé Mexico Products that Ultra Mexico purchased in Mexico, to
`
`which stickers were applied and were ultimately imported into and sold in the U.S. by Ultra
`
`International, during the relevant time period, look like this 2022 sample of the Abuelita Nestlé
`
`Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during discovery:
`
`3
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 8 of 223
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`
`
`
`
`
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`
`
`See P-4, NUSA-Ultra00267651-52, NUSA-Ultra00267670-75 (2022 sample that Ultra’s counsel
`
`sent to Plaintiffs’ counsel without stickers); PPE-11.
`
`14. The Abuelita Nestlé Mexico Products that Ultra Mexico purchased in Mexico,
`
`which were ultimately imported into and sold in the U.S. by Ultra International with the stickers
`
`applied, during the relevant time period, look like this 2020 sample of the Abuelita Nestlé Mexico
`
`Product, which Ultra’s counsel made available for inspection to Plaintiffs’ counsel during
`
`discovery:
`
`4
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 9 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 9 of 223
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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 10 of 223
`
`
`
`See P-5, NUSA-Ultra00227470, NUSA-Ultra00227475-80, NUSA-Ultra00227482-84, NUSA-
`
`Ultra00227487 (pictures of the “2020 samples” made available for inspection at Ultra counsel’s
`
`Washington, D.C. office in 2022, comprising stickers); see also id. at NUSA-Ultra00227441
`
`(picture of stickers); PPE-12.
`
`2.
`
`Carnation
`
`15. A representative authorized NUSA Carnation product sold in the U.S. during the
`
`relevant time period looks like this:
`
`
`
`
`
`
`
`6
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`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 11 of 223
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`
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`
`
`See P-7, NUSA-Ultra00227662, NUSA-Ultra00227664-665, NUSA-Ultra00227667-669, NUSA-
`
`Ultra00227672 (pictures of an authorized Carnation sample from 2022); PPE-2.
`
`16. The Carnation Nestlé Mexico Products that Ultra Mexico purchased in Mexico, to
`
`which stickers were applied and were ultimately imported into and sold in the U.S. by Ultra
`
`International, during the relevant time period, look like this 2022 sample of the Carnation Nestlé
`
`Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during discovery:
`
`7
`
`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 12 of 223
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`
`
`
`
`
`
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`
`See P-9, NUSA-Ultra00267658-664 (2022 sample that Ultra’s counsel sent to Plaintiffs’ counsel
`
`
`
`
`
`
`
`without stickers); see also id. at NUSA-Ultra00267635-36; PPE-14.
`
`17. The Carnation Nestlé Mexico Products that Ultra Mexico purchased in Mexico,
`
`which were ultimately imported into and sold in the U.S. by Ultra International with the stickers
`
`applied, during the relevant time period, look like this 2020 sample of the Carnation Nestlé Mexico
`
`Product, which Ultra’s counsel made available for inspection by Plaintiffs’ counsel during
`
`discovery:
`
`8
`
`

`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 13 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 13 of 223
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`9
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`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 14 of 223
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`
`
`See P-10, NUSA-Ultra00227464-66, NUSA-Ultra00227468-69, NUSA-Ultra00227471-74
`
`(pictures of the “2020 samples” made available for inspection at Ultra counsel’s Washington,
`
`D.C. office in 2022, comprising stickers); see also id. at NUSA-Ultra00227444, NUSA-
`
`Ultra00227533 (pictures of the stickers); PPE-15; PPE-14.
`
`3.
`
`La Lechera
`
`18. A representative authorized NUSA La Lechera canned product sold in the U.S.
`
`during the relevant time period looks like this:
`
`
`
`
`
`
`
`
`
`10
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`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 15 of 223
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`
`
`See P-11, NUSA-Ultra00309845-48, NUSA-Ultra00309850-51, NUSA-Ultra00309856-57
`
`
`
`
`
`
`
`(pictures of an authorized La Lechera canned sample from 2022); PPE-3.
`
`19. A representative authorized NUSA La Lechera squeeze bottle product sold in the
`
`U.S. during the relevant time period looks like this:
`
`
`
`
`
`11
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`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 16 of 223
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`
`
`See P-11, NUSA-Ultra00227578-82, NUSA-Ultra00227585 (pictures of an authorized La Lechera
`
`squeeze bottle sample from 2022); PPE-4.
`
`20. The La Lechera 375g (284ml) Nestlé Mexico Products that Ultra Mexico purchased
`
`in Mexico, to which stickers were applied and were ultimately imported into and sold in the U.S.
`
`by Ultra International, during the relevant time period, look like this 2022 sample of the La Lechera
`
`375g (284ml) Nestlé Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during
`
`discovery:
`
`
`
`
`
`
`
`
`
`
`See P-13, NUSA-Ultra00267619-624 (2022 sample that Ultra’s counsel sent to Plaintiffs’ counsel
`
`
`
`
`
`
`
`without stickers); see also id. at NUSA-Ultra00267676, NUSA-Ultra00267677; PPE-16.
`
`12
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 17 of 223
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`
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`21. The La Lechera 375g (284ml) Nestlé Mexico Products that Ultra Mexico purchased
`
`in Mexico, which were ultimately imported into and sold in the U.S. by Ultra International with
`
`the stickers applied, during the relevant time period, look like this 2022 sample of the La Lechera
`
`375g (284ml) Nestlé Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during
`
`discovery:
`
`
`
`
`
`
`
`
`
`
`
`
`
`See P-13, NUSA-Ultra00267625-631 (2022 sample that Ultra’s counsel sent to Plaintiffs’ counsel
`
`with stickers); PPE-17.
`
`22. The La Lechera 387g (293ml) Nestlé Mexico Products that Ultra Mexico purchased
`
`in Mexico, which were ultimately imported into and sold in the U.S. by Ultra International, during
`
`13
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 18 of 223
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`
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`the relevant time period, look like this example of the La Lechera 387g (293ml) Nestlé Mexico
`
`Product available through Amazon and other online retailers, upon initial purchase in Mexico (i.e.,
`
`without the stickers):
`
`
`
`
`
`
`See P-15, NUSA-Ultra00406917-922 (images from an Amazon Mexico webpage, dated July 27,
`
`
`
`
`
`2022).
`
`23. The La Lechera 387g (293ml) Nestlé Mexico Products that Ultra Mexico purchased
`
`14
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 19 of 223
`
`
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`in Mexico, which were ultimately imported into and sold in the U.S. by Ultra International with
`
`the stickers applied, during the relevant time period, look like this 2020 sample of the La Lechera
`
`387g (293ml) Nestlé Mexico Product, which Ultra’s counsel made available for inspection to
`
`Plaintiffs’ counsel during discovery:
`
`
`
`
`
`15
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`

`

`Wt. / Contenido Neto ?
`
`UCT
`
`!
`
`See P-14, NUSA-Ultra00227454, NUSA-Ultra00227456, NUSA-Ultra00227458-63, NUSA-
`See P-14, NUSA-Ultra00227454, NUSA-Ultra00227456, NUSA-Ultra00227458-63, NUSA-
`
`Ultra00227467, NUSA-Ultra00227517 (pictures of the “2020 samples” made available for
`Ultra00227467, NUSA-Ultra00227517 (pictures of the “2020 samples” made available for
`
`inspection at Ultra counsel’s Washington, D.C. office in 2022, comprising stickers); see also id.
`inspection at Ultra counsel’s Washington, D.C. office in 2022, comprising stickers); see also id.
`
`at NUSA-Ultra00227435, NUSA-Ultra00227527 (pictures of the stickers); PPE-18.
`at NUSA-Ultra00227435, NUSA-Ultra00227527 (pictures of the stickers); PPE-18.
`
`16
`16
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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 20 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 20 of 223
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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 21 of 223
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`
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`24. The La Lechera squeeze bottle Nestlé Mexico Products that Ultra Mexico
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`purchased in Mexico, to which stickers were applied and were ultimately imported into and sold
`
`in the U.S. by Ultra International, during the relevant time period, look like this sample of the La
`
`Lechera squeeze bottle Nestlé Mexico Product, purchased by Plaintiffs’ counsel in 2022:
`
`
`
`
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`17
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`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 22 of 223
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`
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`
`
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`
`
`
`See P-16, NUSA-Ultra00402883-84, NUSA-Ultra00402887, NUSA-Ultra00402892-94, NUSA-
`
`Ultra00402949, NUSA-Ultra00402980-81 (pictures from sample purchased in Mexico by
`
`Plaintiffs’ counsel in 2022).
`
`4.
`
`Media Crema
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`25. A representative authorized NUSA Media Crema product sold in the U.S. during
`
`the relevant time period looks like this:
`
`18
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`

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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 23 of 223
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`See P-17, NUSA-Ultra00227629, NUSA-Ultra00227631, NUSA-Ultra00227634, NUSA-
`
`Ultra00227636-39 (pictures of an authorized Media Crema sample from 2022); PPE-5.
`
`26. The Media Crema 225ml (225g) Nestlé Mexico Products that Ultra Mexico
`
`purchased in Mexico, to which stickers were applied and were ultimately imported into and sold
`
`in the U.S. by Ultra International, during the relevant time period, look like this 2022 sample of
`
`the Media Crema 225ml (225g) Nestlé Mexico Product, which Ultra’s counsel produced to
`
`19
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 24 of 223
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`
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`Plaintiffs’ counsel during discovery:
`
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`
`
`
`
`
`
`See P-19, NUSA-Ultra00267637-642 (2022 samples that Ultra’s counsel sent to Plaintiffs’ counsel
`
`
`
`
`
`without stickers); PPE-19.
`
`27. The Media Crema 225ml (225g) Nestlé Mexico Products that Ultra Mexico
`
`20
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 25 of 223
`
`
`
`purchased in Mexico, which were ultimately imported into and sold in the U.S. by Ultra
`
`International with the stickers applied, during the relevant time period, look like this 2022 sample
`
`of the Media Crema 225ml (225g) Nestlé Mexico Product, which Ultra’s counsel produced to
`
`Plaintiffs’ counsel during discovery:
`
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`21
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`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 26 of 223
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`See P-19, NUSA-Ultra00267643-650 (2022 samples that Ultra’s counsel sent to Plaintiffs’ counsel
`
`
`
`with stickers); PPE-20.
`
`5.
`
`Nescafé
`
`28. A representative authorized NUSA Nescafé Clasico 300g jar product sold in the
`
`22
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 27 of 223
`
`
`
`U.S. during the relevant time period looks like this:
`
` 
` 
`See P-22, NUSA-Ultra00309849, NUSA-Ultra00309852-55, NUSA-Ultra00309861 (images of a
`
`2022 sample of a 300g jar of Nescafe Clasico); PPE-6.
`
`29. The Nescafé Clasico 350g Nestlé Mexico Products that Ultra Mexico purchased in
`
`Mexico, to which stickers were applied and were ultimately imported into and sold in the U.S. by
`
`Ultra International, during the relevant time period, look like this 2022 sample of the Nescafé
`
`Clasico 350g Nestlé Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during
`
`discovery:
`
`23
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 28 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 28 of 223
`
`
`
`
`
` 
`
` 
`
` 
`
` 
`
`24
`24
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 29 of 223
`
`
`
` 
`See P-24, NUSA-Ultra00267654-657 (2022 sample of 350g Nescafe Clasico sent by Ultra to
`
` 
`
`Plaintiffs’ counsel without stickers); PPE-22.
`
`30. The Nescafé Clasico 350g Nestlé Mexico Products that Ultra Mexico purchased in
`
`Mexico, which were ultimately imported into and sold in the U.S. by Ultra International with the
`
`stickers applied, during the relevant time period, look like this 2022 sample of the Nescafé Clasico
`
`350g Nestlé Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during
`
`discovery:
`
`
`
`25
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 30 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 30 of 223
`
`
`
` 
`
` 
`
` ,
`
`‘
`
`iid
`
`T
`|
`i?
`RE INSTAN
`=eCOreE |
`ESONETO faayy)
`1
`Oae
`ET WTIP
`: 42.34 02 (350 9)
`eo y 4
`
` 
`
`26
`26
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 31 of 223
`
`
`
` 
`
`See P-24, NUSA-Ultra00267632-634, NUSA-Ultra00267653 (pictures of 2022 sample of 350g jar
`
`of Nescafe Clasico sent by Ultra to Plaintiffs’ counsel with stickers); PPE-23.
`
`6.
`
`NIDO
`
`31. A representative authorized NUSA 1.6kg can of NIDO Kinder 1+ product sold in
`
`the U.S. during the relevant time period looks like this:
`
`
`
`
`
`
`
`
`
`27
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 32 of 223
`
`
`
`  
` 
`
`   
`
` 
`See P-27, NUSA-Ultra00227619-20, NUSA-Ultra00227622-23 (pictures of an authorized 1.6kg
`
`  
`
` 
`
`NIDO Kinder 1+ sample from 2022); see also id. at NUSA-Ultra00227616-17; PPE-7.
`
`
`
`28
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 33 of 223
`
`
`
`32. The 1.5kg NIDO Kinder 1+ Nestlé Mexico Products that Ultra Mexico purchased
`
`in Mexico, to which stickers were applied and were ultimately imported into and sold in the U.S.
`
`by Ultra International, during the relevant time period, look like this 2022 sample of the 1.5kg
`
`NIDO Kinder 1+ Nestlé Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel
`
`during discovery:
`
`
`
`
`
`29
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 34 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 34 of 223
`
`
`
`
`
`
`
`
`
`
`
`30
`30
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 35 of 223
`
`
`
`
`P-38, NUSA-Ultra00267607-611 (pictures of 1.5kg NIDO Kinder 1+ samples that Ultra counsel
`
`
`
`sent to Plaintiffs’ counsel in 2022 without stickers); see also id. at NUSA-Ultra00267618; PPE-
`
`25.
`
`33. The 1.5kg NIDO Kinder 1+ Nestlé Mexico Products that Ultra Mexico purchased
`
`in Mexico, which were ultimately imported into and sold in the U.S. by Ultra International with
`
`the stickers applied, during the relevant time period, look like this 2022 sample of the 1.5kg NIDO
`
`Kinder 1+ Nestlé Mexico Product, which Ultra’s counsel produced to Plaintiffs’ counsel during
`
`discovery:
`
`
`
`
`
`31
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 36 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 36 of 223
`
`
`
`
`
`
`
`
`
`
`
`32
`32
`
`

`

`
`
`‘ay
`
`= 2.8
`
`meg
`
`Sanr
`
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 37 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 37 of 223
`
`0agregarel polve.
`
`
`
`
`
`
`120 mi (41.02) mantonga on
`reffigeraciéa |
`Deesr
`F
`Fovuaytnsvoaieargentoniet
`F tuePara evitar grumos siempre afiade
`t/taagua,noalreves. Elagusprevamare
`
`
`
`33
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 38 of 223
`
`
`
`P-38, NUSA-Ultra00267612-616 (pictures of 1.5kg NIDO Kinder 1+ samples that Ultra counsel
`
`sent to Plaintiffs’ counsel in 2022 with stickers); see also id. at NUSA-Ultra00267617; PPE-26.
`
`34. A representative authorized NUSA 1.6kg can of NIDO Fortificada product sold in
`
`the U.S. during the relevant time period looks like this:
`
`  
`
` 
`
` 
`
`34
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 39 of 223
`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 39 of 223
`
`
`
`yutritionFacts/ DatosdeNutri
`Jgqrox53 servings per Container/orcionesporerga
`serving size/Tamafio por porcién 4 cup/taza (3g)
`
`hemepotnoreingCastidedperparca
`Calories / Calorias
`
`= —_
`
`J
`dh
`fr
`a
`SREfi
`Pe alecicny/[Preparation ne
`2Wali! Ob
`apes
`To prepare a glass
`Nea optiOphea
`aid Vi cup (4 Tepperto
`‘SS recente,
`(Bie) waxar
`
`‘hy a Pare evitar*
`vues
`clamping.
`veal Eeeely ate
`MOOG paa pc. |Amey al pwc|
`
`aly Value
`penn Cand 15% a
`“e Dat Value of iron.
`
`11 te gm Raw a 2 tnA ego
`aes ay edgeraaE
`Saeeee El
`
`!
`
`so.
`“GACHENTES:EteENTERAweasies
`UG PIRSEOSFATO FERRIC(HIERIACe SULFATD
`BenNCECEROL!(yanPP.
`MON
`jen
`(WREGULARDRY WHOLE
`“CAEDENTS ig
`Lire REBATES WO STNEN
`se
`TERA EN POLOREGULAR
`Staretee Bey
`STL
`USK ay ered
`
` 
`
` 
`
`  
`
`las 10 SENALES DE UNA BUENA NUTR
`sikfor the10 SIGNS OF GOOD MOTTEaaa
`
`DeiaPai
`.
`Ty
`
`'
`q
`
`
`See P-30, NUSA-Ultra00227597-598, NUSA-Ultra00227600-604 (images of 2022 sample of
`See P-30, NUSA-Ultra00227597-598, NUSA-Ultra00227600-604 (images of 2022 sample of
`
`
`
`"S60 enrn exaseDAND STOREMACOS
`
`35
`35
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 40 of 223
`
`
`
`authorized 1.6kg can of NIDO Fortificada); PPE-8.
` 
`
`C.
`
`Ultra’s Illegal Grey Market Product Business
`
`35. Ultra International is a subsidiary of Ultra Mexico and a distributor of Mexican
`
`products in the United States and elsewhere.
`
`36. Ultra International does not have any employees and has a San Antonio, Texas
`
`business address, which is the address of its external accounting firm
`
`37. Ultra Mexico is not a direct customer of Nestlé Mexico.
`
`38. Rather, Ultra Mexico purchases the Nestlé Mexico Products in Mexico from
`
`Mexican wholesalers and/or retailers (e.g., Sam’s Club, Garis, and Adelco) who purchase the
`
`Nestlé Mexico Products directly from Nestlé Mexico.
`
`39. After Ultra Mexico receives the Nestlé Mexico Products in a warehouse in Tijuana,
`
`Mexico, which is leased by Ultra Mexico, Ultra Mexico affixes stickers to the Nestlé Mexico
`
`Products for importation into the U.S.
`
`40. Ultra Mexico sells and transfers title to the Nestlé Mexico products to Ultra
`
`International in Mexico.
`
`41. Ultra International imports the Nestlé Mexico products over the U.S. border by
`
`truck.
`
`42. Ultra Mexico has not entered into a written distribution or license agreement with
`
`NUSA, SPN or Nestlé, S.A. providing for Ultra Mexico’s use of the Nestlé Marks on products
`
`sold, distributed, and/or advertised in the U.S.
`
`43. Ultra International has not entered into a written distribution or license agreement
`
`with NUSA, SPN or Nestlé, S.A. providing for Ultra International’s use of the Nestlé Marks on
`
`products sold, distributed, and/or advertised in the U.S.
`
`36
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 41 of 223
`
`
`
`44. Prior to the lawsuit, Ultra had not communicated with any employee of SPN or
`
`NUSA to obtain consent for sale of the Nestlé Mexico Products at issue in this case in the U.S.
`
`45. SPN did not, either before or after the filing of the lawsuit, provide explicit oral or
`
`written consent, approval, or authorization to Ultra to import and sell the Nestlé Mexico Products
`
`at issue in this case in the U.S.
`
`46. SPN did not, either before or after the filing of the lawsuit, provide implicit oral or
`
`written consent, approval, or authorization to Ultra to import and sell the Nestlé Mexico Products
`
`at issue in this case in the U.S.
`
`47. NUSA did not, either before or after the filing of the lawsuit, provide explicit oral
`
`or written consent, approval, or authorization to Ultra to import and sell the Nestlé Mexico
`
`Products at issue in this case in the U.S.
`
`48. NUSA did not, either before or after the filing of the lawsuit, provide implicit oral
`
`or written consent, approval, or authorization to Ultra to import and sell the Nestlé Mexico
`
`Products at issue in this case in the U.S.
`
`49. Ultra International sells the Nestlé Mexico Products to U.S. distributors, who sell
`
`to specialty retailers and other customers, who sell the products to the final consumer.
`
`50. Ultra International also sells the Nestlé Mexico Products directly to specialty
`
`retailers and other customers, who sell the products to the final consumer.
`
`51. Since approximately May 2016, Ultra International’s U.S. customers to whom it
`
`has sold the Nestlé Mexico Products include:
`
`a. 99 Cents Only Stores
`
`b. AC Foods
`
`c. Best Foods
`
`37
`
`

`

`Case 5:20-cv-00384-OLG Document 355 Filed 01/15/24 Page 42 of 223
`
`
`
`d. El Super
`
`e. La Bodega
`
`f. NAFTA Dis