Major US Potato Processors Face Price-Fixing Allegations in New Suits

Four of the largest potato processing companies in the US are facing legal action for allegedly conspiring to inflate prices on frozen potato products, including French fries, hash browns, and tater tots, according to lawsuits filed in federal court.

Lamb Weston, McCain Foods, J.R. Simplot, and Cavendish Farms are named in a lawsuit filed by Pennsylvania-based grocery chain Redner’s Markets on Friday in Chicago’s Northern District of Illinois. Per Reuters, the complaint alleges that these companies violated U.S. antitrust laws through price-fixing practices.

A separate lawsuit, filed on Sunday, includes the same group of companies along with the industry organization Potatoes USA. This class action, per Reuters, targets the processors and Potatoes USA over similar claims of illegal price-fixing and market manipulation in the frozen potato sector.

According to the lawsuits, the companies control a significant portion of the $68 billion frozen potato market and shared sensitive commercial data through a third-party industry group that provides market snapshots. The plaintiffs argue that such data-sharing discouraged competition, as it encouraged the companies to align their pricing strategies rather than competing against one another.

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The lawsuits highlight that the price of frozen potato products rose by 47% between July 2022 and July 2024, despite a significant drop in input costs during the same period, per Reuters. Redner’s Markets claims this price increase was the direct result of coordinated actions among the processors.

The lawsuits further allege that the companies used trade industry conferences to collude on pricing, undermining competition and violating antitrust laws. The legal actions seek unspecified monetary damages and a court order to end the alleged price-fixing practices.

None of the companies named in the lawsuits have yet responded to requests for comment, according to Reuters.

The cases are filed under the name Redner’s Markets Inc v. Lamb Weston Holdings et al, U.S. District Court, Northern District of Illinois, No. 1:24-cv-11801.

Source: Reuters