
The drinks company claims that the supermarket's Pitcher's, a gin-based spirits drink to which lemonade and fruit can be added, is a copy of its Pimms.
Pitcher's, which is cheaper than Pimm's, is described by Sainsbury's marketing material as ‘synonymous with summer'.
In a statement, Diageo said: ‘We can confirm that we have issued legal proceedings against Sainsbury's in relation to an intellectual property matter.'
Sainsbury's said 'We intend to vigorously defend ourselves against these allegations. Our customers are savvy enough to know exactly what they're buying, the clue is in the name, and we see no basis for such a claim.'
Diageo rolled out a new £1.4m TV ad campaign for Pimm's this summer, dropping its brand ambassador Alexander Armstrong after seven years.