Redner’s Markets claims ‘potato cartel’ drove french fry prices up 47%: lawsuit

Redner’s Markets Inc. has filed a federal lawsuit claiming collusion by a “potato cartel” has caused prices of frozen potato products to soar by 47%.

The suit was filed by the Berks County-headquartered supermarket chain against four companies it says control more than 97% of the $68-billion-per-year frozen potato products market.

Employee-owned Redner’s operates a supermarket in Ephrata Borough.

Redner’s suit, filed in United States District Court for the Northern District of Illinois on Nov. 15, spurred suits from consumers from Florida, Washington, D.C, Virginia and California. In addition to the potato producers, the consumer suits name the National Potato Promotion Board and market research Circana as defendants.

This is a copy of the lawsuit filed by Redner’s Markets about price fixing by a so-called potato cartel

Redner’s says since at least 2021, Cavendish Farms, Lamb Weston, McCain Foods and the J.R. Simplot Co., shared trade information and coordinated price increases. McCain and Cavendish are based in Canada, while Lamb Weston and Simplot are based in Idaho.

In statements to The Washington Post and Canadian Broadcasting Co., McCain said it strongly disputes the antitrust allegation and will vigorously defend against the suits.

None of the companies have filed responses yet to the suits.

Redner’s suit accused Lamb Weston of instructing managers to avoid email and use text to discuss pricing to avoid creating a trail that could be discovered in an antitrust investigation.

The lawsuits have not been certified as class actions. Redner’s and the consumers are both seeking class action status. If certified the suits would include people or entities that bought the frozen potato products after Jan.1, 2021.

Frozen french fries are the largest part of the frozen potato product market, potentially impacting approximately 579,303 restaurants in the United States that feature french fries on their menu, the suit said.

The Redner’s suit cited data from the Federal Reserve Bank of St. Louis that as of Aug. 1 frozen potato products prices were at their highest recorded level since 1967. Redner’s claims the price increases can’t be explained by cost inputs and that the frozen potato product market is inelastic, meaning it does not react to price changes.