Pennsylvania grocer accuses frozen potato producers of price-fixing in federal suit

BLANDON, Pa. (WHTM) -- A Pennsylvania-based grocery store chain is suing four frozen potato product companies they say control 97% of the market, accusing them of price-fixing.

Berks County-based Redner's Markets filed suit Friday in an Illinois federal court against Lamb Weston, Inc., McCain Foods, J.R. Simplot, and Cavendish Farms alleging violation of the Sherman Antitrust Act.

Redner's has locations across eastern Pennsylvania -- including a location near Hershey -- and the Delmarva Peninsula.

The complaint filed by the grocery store chain accuses the four companies which they say control 97% or more of the frozen potato products market of implementing lockstep price increases.

Those increases, Redner's says, "allowed them to realize unprecedented margins."

"In 2021 and again in the spring of 2022, while facing increased input costs, Defendants changed their pricing methods to collectively impose “strong arm” price hikes with no worry their customers could defect to competitors," the complaint states. "In contrast to their own sales prices, Defendants’ input costs peaked in 2022 and fell steadily after that."

"Following Defendants’ series of matching price increases, in April 2022, one restaurant owner remarked that it was '[a]mazing how all of the major suppliers for French fries and the like are all raising their prices at the same time and by the same amount,'" the complaint continued.

The lawsuit alleges that prices for frozen potato products spiked dramatically because of what Redner's called "collusion" by the defendants.

The lawsuit requests a jury trial.

Requests for comment were not immediately returned by Redner's or the defendants.

You can read the complaint that is attached below.