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Home » Grocery Wholesalers Face Anticompetitive Lawsuit

Grocery Wholesalers Face Anticompetitive Lawsuit

By    MDM  Staff 
June 29, 2009 Comments (2)
More about:  Grocery/Foodservice,  Legal

Grocery wholesalers SuperValu Inc. and C&S Wholesale Grocers face a class action lawsuit alleging the two companies "conspired to allocate markets, customers and territories" in New England and the Midwest for the purpose of "fixing, raising, andmaintaining prices." DeLuca's Corp., a Boston grocer, filed the complaint on June 19.

The complaint contends that in 2003 SuperValu agreed to exit the New England market in exchange for C&S's agreement to refrain from competing in the Midwest. As a result, prices in both regions that had benefitted from competition between the two entities have been inflated and supply reduced.

SuperValu is the dominant wholesaler in the Midwest, with 2007 sales of more than $9 billion. C&S reported sales of more than $19 billion in 2007, and is the ...

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Grocery wholesalers SuperValu Inc. and C&S Wholesale Grocers face a class action lawsuit alleging the two companies "conspired to allocate markets, customers and territories" in New England and the Midwest for the purpose of "fixing, raising, andmaintaining prices." DeLuca's Corp., a Boston grocer, filed the complaint on June 19.

The complaint contends that in 2003 SuperValu agreed to exit the New England market in exchange for C&S's agreement to refrain from competing in the Midwest. As a result, prices in both regions that had benefitted from competition between the two entities have been inflated and supply reduced.

SuperValu is the dominant wholesaler in the Midwest, with 2007 sales of more than $9 billion. C&S reported sales of more than $19 billion in 2007, and is the dominant grocery wholesaler in New England.

SuperValu and C&S previously have referred to the agreement as an "asset swap," in which SuperValu exchanged its New England properties for Midwest distribution center obtained by C&S from another bankrupt grocery wholesaler. DeLuca contends this an inaccurate classification of the move in part because C&S closed the distribution centers received in the swap shortly after the deal was completed.

The class action lawsuit is requesting three times the amount of actual damages that resulted from this anticompetitive agreement. Specific figures were not disclosed.

SuperValu and C&S have 20 days from receipt of the summons to file a response.

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  • christopher Weeks May 11, 2010 2:41 PM
    I was employed from february 2008 thru august 2008 until i was unable to work due to an injury that broke my wrist on C & S property leaving work on august 18th. I was off the clock but on C & S property. I'm interested in finding out how to get some of the class action money and also to find out if they are required to give me my job back now that I'm healthy. My phone number is 4137824917. Please call me back
    Post a Reply   Report as Offensive
  • James Betterley October 19, 2009 12:45 PM
    I would be included to recieve some money from this lawsuit but i dont know who to contact. Is there any information you could give me?
    Post a Reply   Report as Offensive
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