News Release
CHICAGO – Major grocery brands are accusing two major U.S. sugar refiners of coordinating prices in a lawsuit that adds to growing scrutiny of the concentrated sugar industry.
The companies allege American Sugar Refining and United Sugar Producers & Refiners shared sensitive pricing information through Commodity Information Inc., a third-party market analyst. The alleged arrangement allowed the refiners to monitor one another’s pricing positions and coordinate strategies.
The lawsuit argues that industry consolidation, combined with limits on sugar imports, has helped maintain elevated U.S. sugar prices. Raw sugar delivered to U.S. ports can cost more than twice the international benchmark, according to the allegations.
Food manufacturers say higher sugar costs affect products ranging from candy and sauces to baked goods and can ultimately increase prices for consumers. They also contend that elevated domestic costs can encourage manufacturers to move production overseas.
American Sugar Refining has rejected the allegations, characterizing the lawsuit as a repackaged version of previous litigation and disputing claims of collusion.
The case is part of a broader wave of litigation involving sugar prices. Supermarket chains and other food manufacturers have filed similar complaints, with several cases consolidated before a federal judge in Minnesota.