DISCOUNT retailer GrandMart Warehouse Club says its agreement to stop selling the United States-made 7-Up soft drink amid allegations of an infringement of trademark rights will have no impact on its sales. GrandMart vice-president Gregory Ng yesterday said: 'The impact on us will be nil, 7-Up is only one of 1,100 items we sell.' Last week the retailer, Hong Kong's first US-style cut-price club, settled out of court with drinks giant Seven Up International, an Irish subsidiary of Pepsico Inc, which had started legal action to stop GrandMart selling the US-bottled drink in the territory. In the litigation started last October, GrandMart was alleged to have infringed 7-Up's territorial trademark rights. Seven Up International claimed it had the trademark rights in all countries other than the US. Mr Ng said the 7-Up drinks GrandMart imported from the US were produced by another drinks company, Seven Up Co USA, which owned the trademark rights in the US. 'We are now looking at importing 7-Up from other countries.' He ruled out the sale of Hong Kong bottled 7-Up because he said the wholesale price of imported drinks was much lower. 'The local distributor offers us $2.33 per can whereas the US imported 7-Up drinks cost us $1.82 which is 28 per cent cheaper,' Mr Ng said. He reiterated GrandMart's plans to float on the stock exchange early next year. 'We are seeking a listing on the exchange to fund our expansion projects in the territory and Malaysia,' he said.
