Australia's two biggest coffee processors and marketers - Cantarella Bros and Valcorp Fine Foods - are at loggerheads and in court.

Central to the dispute which has reached the Federal Court are trade advertisements in which Valcorp said its Lavazza brand was number one, an assertion it defended on grounds of general superiority rather than sales volume.

An earlier court hearing heard detailed argument about sales figures and the reaction of likely readers - big supermarket buyers and small retailers - to the assertions.

Judge Kevin Lindgren found that two of three advertisements that Cantarella - owners of the Vittoria brand - complained over, were likely to be misleading for deceptive.

But Australia's business daily, The Financial Review, says the latte war is far from over. Valcorp has filed a counter suit, which will take the parties back to the Federal Court later this year.