One April afternoon in 2022, Josh Saltzman, a sports bar owner in Washington, D.C., received a notice from his food distributor about a price hike on frozen potato products, including french fries and Tater Tots. It turned out that the four major suppliers were all increasing prices by $0.12 per pound around the same time. Saltzman smelled something fishy and suspected collusion.

Taking to the internet, Saltzman’s tweet about “Big Potato” went viral, sparking a new wave of antitrust lawsuits against the frozen potato market’s biggest players. These lawsuits allege that the industry giants engaged in price-fixing, essentially forming a “cartel” to drive up prices on french fries and Tater Tots across the country.

Consolidation has played a significant role in the frozen potato market, with just four companies now controlling nearly all of the $68 billion industry. These firms are accused of using third-party platforms like PotatoTrac to share confidential information, leading to record-high prices on popular potato products.

Consumers have certainly felt the pinch, with prices at fast-food chains like McDonald’s skyrocketing and even local eateries experiencing rising costs for fries. Between 2022 and 2024, frozen potato product prices surged by 47 percent, despite operating costs decreasing. This shift towards industry consolidation and higher prices is not unique to the potato market but is a trend seen across various sectors.

The battle against the potato market giants gained momentum in November, with a series of class action lawsuits filed by restaurants, grocery stores, and distributors. These legal actions aim to hold the companies accountable for allegedly colluding to keep prices artificially high, harming consumers and businesses in the process.

Past competition in the frozen potato industry has given way to dominance by just four major players – Lamb Weston, J.R. Simplot Company, McCain Foods, and Cavendish Farms. Over the years, these companies have expanded their market shares by acquiring smaller rivals, making it difficult for new competitors to enter the scene.

While the defendants in these antitrust lawsuits maintain that the claims are baseless, the legal battle shines a light on how consolidation and collaboration can impact prices in the food industry. As industries continue to consolidate and fewer players control the market, consumers may face higher prices and limited choices.

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