November 30, 2023

Major US food companies secure victory in egg price lawsuit

In a significant legal development, major United States food companies General Mills Inc., Kraft Heinz Co., Nestle USA Inc., and the former Kellogg Co. have emerged victorious in a lawsuit over egg prices, Meat + Poultry reported.

The ruling was issued by a US district court on November 20, with damages to be determined in a subsequent court meeting starting November 29.

The verdict, rendered in the US District Court for the Northern District of Illinois in Chicago, involved several defendants, including Cal-Maine Foods Inc., Rose Acre Farms Inc., the United Egg Producers Inc., and the United States Egg Marketers Inc.

Initiated on December 12, 2011, the lawsuit predates the merger of Kraft Foods and Heinz and the spin-off of Kellogg Co. into WK Kellogg Co. and Kellanova. The plaintiffs' contention was that, from at least 1999, the defendants conspired to control the egg supply, artificially maintaining and increasing prices. The alleged conspiracy involved collective actions, short-term measures, control through the United Egg Producers' Certified Guidelines, and coordinated large-scale exports.

Cal-Maine Foods, one of the defendants, intends to challenge the plaintiffs' presentation of damages and will assess the decision, considering options for appeal. Notably, the jury determined that any damages, if proven, would be limited to the period of 2004-2008, despite the plaintiffs alleging a conspiracy from 1998-2008.

Brandon Fox, a partner for Jenner & Block LLP representing the food companies, said that the defendants have been held liable for their antitrust violations, and they are now going to turn their attention to the damages phase.

-      Meat + Poultry