In a preliminary ruling, the District Court in The Hague, Netherlands, said the words 'incredible' and 'impossible' could confuse customers as the words sound and appear similar.
Nestlé therefore has four weeks to remove the aforementioned products from retailers. It will be subjected to a $27,700 fine every day for each of its 10 subsidiary companies if it fails to comply.
'Protect our brand'
According to CNN, the food giant said: "We are disappointed by this provisional ruling as it is our belief that anyone should be able to use descriptive terms such as 'incredible' that explain the qualities of a product."
Nestlé also said that whilst it will 'abide by this decision' - it aims to file an appeal against the ruling.
Impossible Foods welcomed the decision, saying it didn't want to confuse customers, with Chief Legal Officer Dana Wagner adding: "We're grateful that the court recognized the importance of our trademarks and supported our efforts to protect our brand against incursion from a powerful multinational giant."