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July 1, 2021

Smithfield Foods to pay multi-millions to settle pork price-fixing claims

The US meat giant was one of a number of food businesses accused of limiting supply to inflate prices.

US meat giant Smithfield Foods has agreed to pay US$83m to settle litigation that accused it, and other food businesses, of fixing prices in the American pork market.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The settlement with Smithfield – owned by China’s WH Group – resolves anti-trust claims by direct purchasers such as Maplevale Farms.

They alleged that the companies conspired to limit supply to inflate prices and their own profits.

In a statement sent to Just Food, Keira Lombardo, Smithfield’s chief administrative officer, said: “While we deny any liability in these cases and believe that our conduct has always been lawful, we decided that it was in the best interests of the company to negotiate a settlement at this time.

“This settlement eliminates a substantial portion of our exposure in the antitrust litigation for an amount that we believe is in the best interests of our company, as well as our employees, customers and consumers. It significantly reduces the distraction, expense, exposure and inconvenience of protracted litigation, and it allows us to focus on executing the long-term strategy of our business.”

Smithfield’s settlement requires approval by chief judge John Tunheim of the US District Court in Minneapolis.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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