CHICAGO: General Mills Inc, Mars Inc and McKee Foods Corp have joined a growing list of food manufacturers and grocers in antitrust litigation that alleges top US sugar producers colluded to inflate prices for the sweetener used in many of the snacks and drinks Americans consume every day.
In a lawsuit filed in Chicago federal court, the companies claim the vertically integrated producers American Sugar Refining Inc and United Sugar Producers & Refiners effectively coordinated by reporting “competitively sensitive” data pricing and sales to an independent market analyst, Commodity Information Inc, which then published the information to sugar company subscribers.
The suit against the producers, who control the bulk of US sugar refining, is the latest to challenge prices in the heavily consolidated industry, which has long benefitted from government policies that restrict imports.
General Mills, Mars and McKee Foods claim sugar producers maintained “a shared, real-time understanding of each other’s pricing, sold positions, and forward strategies” that amplified the anti-competitive effects of existing policies.
Marianne Martinez, a spokeswoman for American Sugar Refining, rejected the claims on Tuesday.
She said the suit, which was filed last Friday, repackages the same baseless allegations that have been pending for approximately two years.
“It’s simply additional plaintiffs’ lawyers peeling away parties who were already represented in the pending litigation.
As with the earlier case, the facts don’t support their allegations, and we will demonstrate that as we defend this case,” she added.
High US sugar prices have long been a pain point for food companies that use the sweetener in everything from peanut butter to pasta sauce, arguing that paying a premium for the globally abundant crop raises costs for consumers and drives food manufacturing abroad.
US consumers also pay higher prices for retail sugar, including American Sugar Refining’s Domino brand.
Futures for raw sugar delivered to US ports often trade at more than double a global benchmark for raw sugar ready for export. — Bloomberg
