Major food companies allege U.S. sugar producers colluded on price

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesRetail & MarketingMajor food companies allege U.S. sugar producers colluded on priceLawsuits filed by other food makers and grocers have been consolidated before a federal court in MinnesotaAuthor of the article:Futures for raw sugar delivered to U.S. ports often trade at more than double a global benchmark for raw sugar ready for export. Photo by Elena Radu/Getty ImagesGeneral Mills Inc., Mars Inc. and McKee Foods Corp. joined a growing list of food manufacturers and grocers in antitrust litigation that alleges top United States sugar producers colluded to inflate prices for the sweetener used in many of the snacks and drinks Americans consume every day.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIn 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 U.S. sugar refining, is the latest to challenge prices in the heavily consolidated industry, which has long benefited 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 Tuesday. She said the suit, which was filed 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.”High U.S. 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. U.S. consumers also pay higher prices for retail sugar, including American Sugar Refining’s Domino brand.Futures for raw sugar delivered to U.S. ports often trade at more than double a global benchmark for raw sugar ready for export.Consolidation in agriculture — including the egg and meatpacking industries — has been a focus of separate lawsuits and government investigations at a time when inflation is a major concern for voters ahead of this year’s midterm elections. But the reasons for high food costs vary, from the jump in fuel costs to unusual weather. For sugar, they’ve also been affected by declining domestic processing capacity and a long-running system of import restrictions.Lawsuits filed by other food makers and grocers have been consolidated before a federal court in Minnesota, where a judge last year allowed antitrust claims to continue against American Sugar Refining and United Sugar but not against some smaller producers.Supermarket chains including Albertsons Cos. and other food companies including Mondelez International Inc. filed similar complaints against the sugar companies and Commodity Information earlier this year.General Mills declined to comment on its lawsuit. Mars and McKee Foods didn’t immediately respond to requests for comment.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.