Four major potato processors in the United States, Lamb Weston, McCain Foods, J.R. Simplot, and Cavendish Farms, are facing legal action over accusations of conspiring to inflate prices of frozen potato products. Redner's Markets, a Pennsylvania grocery chain, filed a lawsuit against these companies in Chicago federal court, accusing them of illegal price-fixing activities involving frozen French fries, hash browns, tater tots, and other related products. A separate lawsuit with similar allegations was filed, involving the same defendants plus Potatoes USA, in a proposed consumer class action. These lawsuits, which have not yet elicited responses from the defendants, claim violations of U.S. antitrust law.
The plaintiffs argue that these companies, which hold significant sway in the $68 billion annual market for frozen potato products, engaged in sharing competitively sensitive information through a third-party industry group. This practice allegedly discouraged competition among the processors. Redner's Markets pointed out a 47% price increase for frozen potato products from July 2022 to July 2024, during a time when input costs were reportedly declining. The lawsuits also claim that the defendants used trade industry conferences as a platform to coordinate pricing unlawfully. The legal actions are seeking unspecified monetary damages and a court injunction to halt the alleged price-fixing scheme. The case is filed under Redner's Markets Inc. v. Lamb Weston Holdings et al, in the U.S. District Court, Northern District of Illinois.
Source: Reuters