
Minnesota Food Businesses File Antitrust Lawsuits Against U.S. Sugar Producers
Three Minnesota lawsuits allege U.S. sugar producers conspired to fix prices, with plaintiffs seeking injunctions and damages for antitrust violations.

In a startling development, three antitrust lawsuits have been filed by food businesses in federal court in Minnesota this week. The lawsuits have accused some of the largest U.S. sugar-producing companies of engaging in a conspiracy to fix prices. The lawsuits have been filed against United Sugars, which includes American Crystal Sugar and the Minn-Dak Farmers Cooperative; Domino Sugar; Cargill; other producers, and a commodity data company.
Allegations of Price Fixing
The plaintiffs, which comprise Great Harvest Bread in Duluth, Morelos Bakery in St. Paul, and the Connecticut restaurant group WNT, have alleged that since at least 2019, the producing defendants have had an ongoing agreement to artificially raise, fix, stabilize, or maintain Granulated Sugar prices in the United States. One of the lawsuits alleges that to effectuate this agreement, the producing defendants engaged in price signaling and exchanges of detailed, accurate, non-public, competitively sensitive information. These lawsuits, which make broadly similar claims, seek injunctions barring the sugar companies from engaging in illegal conduct and unspecified damages.
Longstanding Antitrust Scrutiny
The sugar industry, dominated by a handful of large companies, has faced antitrust scrutiny for decades. A 1978 consent decree banned sugar companies from communicating about future prices or coordinating on sugar sales. Minnesota, noted for growing more sugar beets than any other state, has been at the center of this controversy.
Industry Response
United Sugars, based in Edina, has called the claims baseless and stated that the case has no merit. On the other hand, Minnetonka-based agribusiness giant Cargill has also denied the allegations, emphasizing that they conduct their business with integrity and compete vigorously but fairly, ethically, and in compliance with the law.
Impact on Grocery Prices
This legal saga comes at a time when grocery prices remain high. Experts have pointed out several factors for the surge in prices, which the industry finds itself embroiled in yet another legal battle. The implications of these lawsuits are likely to be felt across the industry and could have far-reaching consequences.
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