Kraft, Kellog, Nestle, & Others Score Legal Win Over Top Egg Producers

In a recent court battle that has been brewing for over five weeks, heavyweight food corporations such as Kraft, General Mills, and others have successfully convinced a federal jury in Chicago that the country’s leading egg producers have been guilty of unlawfully raising their prices. This decision sets up the stage for a second trial to establish the financial damages.

The allegations were directed toward a group of egg producers, notably Cal-Maine Foods, the biggest producer and distributor of eggs in the U.S., and Rose Acre, the runner-up in the industry. They were accused of collaborating to manipulate the market and maintain highly inflated egg prices.

In a statement after the verdict, Cal-Maine Foods, based in Ridgeland, Mississippi, stated it was disheartened at the decision regarding liability. It noted that “the jury had rejected ‘key portions’ of the plaintiffs’ claims and that it would ‘vigorously contest’ the food producers’ damages presentation in court.”

More than just the egg producers, the trade associations, United Egg Producers and United States Egg Marketers, were also identified as liable. All involved parties firmly disputed any accusations of wrongdoing.

According to the legal representatives from Jenner & Block, the plaintiffs have previously spent a hefty sum, running into hundreds of millions, on egg products. They highlighted that Kellogg alone has purchased egg products worth tens of millions from Rose Acre.

Following the verdict, the plaintiffs expressed their satisfaction with the jury’s decision to hold the defendants accountable. They argued that these egg producers had colluded to limit the supply of eggs, effectively driving up prices. The defendants, on the other hand, justified their actions as strategic business decisions influenced by consumer demands and independent corporate interests.

Moving on to the second phase of the trial, Kraft and General Mills, alongside other plaintiffs like Kellogg and Nestle, will present their case for damages to the same jury next week. However, they have yet to disclose a specific monetary value for the damages they seek.