Sorry Again, Charlie: Starkist Penalized $100 Million for Price Fixing
This episode of Business Wars daily is brought to you by sent pro online from pitney bowes shipping and mailing from your desk is never been simpler than with sent pro online from Pitney Leabeau's. Try It free for thirty days and get a free ten pound scale when you visit. PBA DOT com slash B W daily the from wonder I'm David Brown and this is business words daily on this Tuesday September twenty four remember this sorry Charlie Yep that's Charlie the famous starkist tuna who was wrong about everything he ever said we shared his famous phrase with you you late last October after star Kist pled guilty to federal felony charges of price-fixing along with competitors Bumblebee and chicken of the sea the company company had colluded to falsely keep prices high for two years between twenty eleven and twenty thirteen that was a real problem for retailers and consumers since the three companies any supply four fifths of all the canned tuna eaten in the US. The case has been under investigation for years last week. Federal judge finally handed star Kist a one one hundred million dollar fine for its actions one hundred million dollars. The maximum penalty allowed by law. The fine was a disappointment to star Kist which should complain to financial hardship and asked to pay only fifty million but the hardship argument didn't sway. US District Court Judge Edward Chen who said in effect sorry sorry Charlie. It's possible that greed was the motivation for the price fixing scheme but desperation may have also played a row remember when tuna sandwiches were almost as popular populars. PB and J. in school lunches will not so much anymore. Over the three decades that ended in twenty-six tuna sales declined by almost forty percent according to the Wall Street Journal title the paper reports that millennials are turning away from processed foods in droves last year star Kist Marketing and Innovation Executive told the journal a lot of millennials. Don't don't even own can openers with no can openers and millennials kitchen doors both star-kist the industry leader and Bumblebee are struggling Bumblebee which earlier paid twenty five million dollars in fines is reported to be considering bankruptcy. Both companies were allowed to pay their penalties interest free over five years but star. Kist which is a subsidiary of a Korean company called Dongwon group has also warned that it may lay off some of its twenty six hundred employees. It's also weighing whether to move a plant from American Samoa to Thailand Star. Kist says the investigation is now officially over but it is hardly the end of high profile price-fixing vice fixing investigations in the food business in July. The Department of Justice launched a criminal investigation into alleged price-fixing in the chicken industry. It is investigating instigating whether poultry giant Tyson foods and pilgrim's pride among others colluded to keep those prices artificially high if the allegations turn out to be true you the chicken industry doesn't have its tuna compatriots possible reasons for pushing prices higher chickens after all aren't processed food and so the poultry poultry providers can't blame their problems on the dearth of can openers and millennials kitchens. I'm wondering this is business wars daily. Hey if you like keeping up with a different business rivalry every day going to give five star rating reviewing favorite podcast stat which it it really helps new listeners and for that we thank I David Brown will be back with you tomorrow. This episode is brought to you by Centro. Oh online from pitney bowes shipping and mailing from your desk has never been simpler than with Sunpro online from Pitney bowes with simple online is just click sand and save for as low as four dollars ninety nine cents. That's right four dollars. Ninety nine cents a month. Send envelopes flats and packages right right from your PC and you are back to business in no time try it for free for thirty days and get a free ten pounds scale but only when you visit. PBA EH DOT com slash B W daily that's P._B. Dot Com slash B W daily.