McCain denies involvement in frozen potato price-fixing activities – FreshPlaza

McCain Foods Ltd. and Cavendish Farms Corp., two well-known Canadian companies, are facing allegations of involvement in a lawsuit filed in a Chicago federal court. The lawsuit, filed by Redner’s Markets Inc., claims that these companies, along with American counterparts Lamb Weston Holdings Inc. and J.R. Simplot Co., took part in price-fixing activities related to frozen potato products like French fries, hash browns, and tater tots. Another lawsuit from consumers echoes these claims, also naming marketing group Potatoes USA as part of the alleged scheme. While McCain Foods has denied these accusations, Cavendish Farms has not made a statement on the matter. Together, the accused companies control approximately 98% of the $68 billion frozen potato products market in the United States. The lawsuits argue that these companies manipulated prices by sharing sensitive market data through a third-party industry group, discouraging competitive practices. Both legal actions suggest that the price-fixing scheme started no later than January 2021, with the companies allegedly coordinating to adjust, maintain, and stabilize prices. The lawsuits detail how executives within the industry were purportedly aware of the collusion, facilitated by their affiliation with the National Potato Council and interactions with Potatoes USA, allowing for the exchange of competitive information under the guise of business development efforts. Sylvain Charlebois, a professor at Dalhousie University, emphasized the seriousness with which the U.S. views such collusion and price-fixing allegations, noting the substantial evidence typically required to advance such claims. Price fixing is not a new issue in Canada, with past cases like Loblaw Cos. Ltd. and George Weston Ltd.’s settlement over bread price-fixing suggesting a broader pattern of market manipulation concerns within the food industry. The outcome of the U.S.-based lawsuits is pending, with the courts yet to determine their eligibility as class-action suits. If the lawsuits proceed, affected consumers and retailers could be entitled to compensation for the alleged price manipulations since January 1, 2021.