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  3. OzEmite versus AussieMite: the time two Australian yeast spreads went to court
Aug 13 2016 Post Icon

OzEmite versus AussieMite: the time two Australian yeast spreads went to court

By: Seamus Waldron Published: 13 August 2016

The combatants

To understand the 2016 case you need to know the two products, both Australian, both yeast extracts, both founded specifically to give patriotic shoppers an alternative to Vegemite after Vegemite was sold to Kraft (later Mondelez) in the United States.

AussieMite, the smaller one. Founded by Roger Ramsey, a former pilot, in 2001. Gluten-free, fortified with B12 and iron, made in small batches and quietly built up a loyal following. By the mid-2010s it was being run from Byron Bay by Ramsey’s daughter Elise, with the kind of small-business operating model that depends entirely on word-of-mouth from a few thousand committed customers.

OzEmite, the bigger one. Founded by Dick Smith, the well-known Australian entrepreneur and aviator, as part of his broader Dick Smith Foods range. Smith registered the OzEmite trademark in 1999. Crucially, he did not actually launch the product until 2012, a thirteen-year gap. When it did launch, it was a gluten-free yeast extract, broadly similar to AussieMite in formulation but considerably more heavily marketed.

You can already see where this is going.

The names

OzEmite. AussieMite. Read them out loud. Phonetically identical, or close enough that the average Australian shopper will register them as the same word. Spelt differently but pronounced as the same product name. This is the source of the fight.

Elise Ramsey, fighting to defend the smaller brand, summed it up as well as anyone: “The names sound exactly the same. I’m a bit tired of explaining to potential suppliers that the two products are different.”

For a small business trying to build trade-buyer relationships, having a larger and louder competitor with a phonetically-identical name is genuinely damaging. AussieMite’s potential distributors kept thinking they were already stocking the product, and saying so to the AussieMite team. Hence the lawsuit.

The argument

Australian trademark law (like UK and US law) requires that a registered trademark be “genuinely used” in commerce. If you sit on a trademark without using it for three continuous years, a competitor can challenge the registration and have it struck from the register.

Roger Ramsey’s argument was simple. Dick Smith registered OzEmite in 1999. He did not launch the product until 2012. That is thirteen years of non-use, much longer than the three-year threshold. The OzEmite trademark should therefore be cancelled.

The Australian Trade Marks Office agreed. They ruled in AussieMite’s favour and ordered the OzEmite mark removed from the register. It looked like AussieMite had won.

Dick Smith, as is his prerogative, appealed to the Federal Court.

The judgment

On 12 August 2016, Justice Katzmann delivered a judgment that reversed the Trade Marks Office decision. Her reasoning was that “use” of a trademark, properly understood, includes promotional and marketing activity, not just actual product sales. Dick Smith had been talking publicly about OzEmite for years before the 2012 launch. He had appeared in media interviews discussing the product. He had made promotional statements. All of that, in Katzmann J’s analysis, counted as use of the trademark.

The thirteen-year gap was not a gap. It was a sustained period of promotional pre-launch activity, just without actual product on shelves.

The OzEmite trademark was restored. AussieMite were ordered to pay Dick Smith’s legal costs. Both products were allowed to remain on shelves.

Why this is more interesting than it sounds

It is a legal case about yeast extract spreads, and in that sense it is inherently small. But the principle Justice Katzmann established has been cited several times since in Australian trademark law, and it is a real precedent. Promotional use of a trademark, even without sales, can keep it alive on the register.

For brand-strategy purposes this matters. It means a company can register a name and then sit on it for years while building anticipation, without losing the rights, provided they keep talking about it in public. That is a useful capability to have, and one that smaller competitors should now factor in when they look at apparently-dormant trademarks held by larger players.

The case also illustrates something about the dynamics of small-business-versus-large-business commercial law. The Ramsey family, defending a smaller business in court, ended up paying a much larger company’s legal costs. The “champion of Australian small business” branding that Dick Smith had built up through Dick Smith Foods was, in this case, being deployed against a small Australian competitor. The optics, as Elise Ramsey pointed out, were not flattering.

What happened to the products

OzEmite: Dick Smith Foods closed down in 2018, citing competition from Aldi. But OzEmite survived the corporate shutdown and is now produced by Spring Gully Foods. Still available in Australian supermarkets, still gluten-free, still trading under the name Smith successfully defended.

AussieMite: still operating out of Byron Bay, still run by the Ramsey family, still a small but real business. The court loss did not kill the brand, but it cannot have helped.

Vegemite: in a small piece of irony, Vegemite itself returned to Australian ownership in 2017 when Bega Group bought it back from Mondelez. The whole patriotic-alternative justification for OzEmite and AussieMite became, in that moment, less commercially urgent. The Vegemite-must-be-Australian-owned campaign had succeeded by the back door, just not via the OzEmite or AussieMite routes.

A British footnote

This is, from a British perspective, mostly an Australian story. But it touches Marmite tangentially. Marmite is the original. Vegemite is the Australian rip-off from 1922 (see the global variations for the full global-variations note). OzEmite and AussieMite are both attempts to displace the Australian-but-now-foreign-owned Vegemite with smaller, Australian-owned rivals. The whole Australian yeast-extract market exists in a kind of permanent low-level court of public opinion about identity, ownership, and authenticity that British Marmite has, by comparison, never had to engage with.

The British view of all this tends to be quietly amused. We have one Marmite. It comes from Burton. It is owned by Unilever (and shortly by McCormick). Nobody in Britain has ever felt the need to launch BritEmite or RealMite as a patriotic alternative. The Australian instinct to litigate the question of which yeast extract is the proper one is, in its way, a small national virtue.

Wherever you sit on the question, OzEmite versus AussieMite remains the most entertaining trademark dispute the yeast-extract category has ever produced. It is unlikely ever to be topped.

Sources: Federal Court of Australia judgment, August 2016; contemporary Australian Financial Review and Sydney Morning Herald coverage; the Spring Gully Foods company history.


Update, May 2026: The yeast-spread wars rumble on. For a thought experiment on the ultimate consolidation, see Could Vegemite buy Marmite?.

Provenance: Originally published on ilovemarmite.com (the site's original domain, 2000–2016). Republished here on ilovemarmite.co.uk in 2025 after the .com domain was lost. Original publication date preserved above.

Tags: ozemiteaussiemiteyeastextractaustraliantrademarkvegemitedicksmithmarmiteglutenfreefoodlaw
Categories: Promite & Other Spreads , Shortages & Controversies , Taste Comparisons

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