McCain Foods Ltd. and Cavendish Farms, two prominent Canadian frozen potato producers, have been implicated in lawsuits in the United States, accused of engaging in price-fixing activities. These allegations suggest that the companies, along with other major processors including Lamb Weston Inc., J.R. Simplot Co., and the National Potato Promotion Board, formed a "potato cartel." This cartel is accused of coordinating to share pricing data to inflate frozen potato prices in the U.S. market.

The legal challenges against these entities were initiated through class-action complaints, with one filed on November 15 on behalf of retailers and another on November 17 for consumers, in a federal court in Illinois. Both cases are pending certification. The consumer lawsuit, led by plaintiff Alexander Govea, claims that these companies maintained a "direct line of communication" through which they exchanged pricing information and other sensitive market data, allegedly manipulating prices to the detriment of potato purchasers.

Similarly, the retailer lawsuit, represented by U.S. supermarket chain Redner's Markets Inc., contends that from 2021 onwards, the implicated potato companies have systematically raised prices in unison, thereby achieving unusually high profit margins.

While these accusations have yet to be proven in court, McCain Foods has stated Charlie Angelakos, its vice president for global external affairs and sustainability, categorically denies any breach of antitrust or other laws related to the sale of frozen potato products. McCain Foods has expressed its intention to robustly contest these claims. 

Source: Canadian Press November 20, 2024