Three antitrust lawsuits filed by food businesses in federal court in Minnesota this week accuse some of the largest U.S. sugar-producing companies of conspiring to fix prices.
The lawsuits name United Sugars, which includes American Crystal Sugar and the Minn-Dak Farmers Cooperative; Domino Sugar; Cargill; other producers, and a commodity data company. The plaintiffs in the class-action lawsuits include Great Harvest Bread in Duluth, Morelos Bakery in St. Paul and the Connecticut restaurant group WNT,
"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. "To effectuate this agreement, the Producing Defendants engaged in price signaling and exchanges of detailed, accurate, non-public, competitively sensitive information."
The lawsuits, which make broadly similar claims, seek injunctions barring the sugar companies from engaging in illegal conduct and unspecified damages.
The sugar industry, which is 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 is known for its large sugar beet production, with United Sugars, headquartered in Edina, dismissing recent claims as unfounded.
In a released statement, United Sugars stated, "While it is our policy not to extensively comment on legal matters, we firmly believe that this case lacks any substance, and we will vehemently defend ourselves against these groundless accusations."
Cargill, a major agribusiness company based in Minnetonka, also refuted the accusations.
"We uphold the highest standards of integrity in all our operations," Cargill expressed in a statement. "Our competitive practices are conducted with fairness, ethics, and full compliance with the law."
