Lawsuit Over Corn-Syrup Ads Is Settled
November 20 2015 - 07:08PM
Dow Jones News
By Jesse Newman
A billion-dollar battle over sweeteners came to a close on
Friday as big sugar companies and corn refiners, including Archer
Daniels Midland Co., said they had settled long-running litigation
over advertisements about high-fructose corn syrup.
Terms of the deal--reached during the middle of a trial--were
confidential, the companies said in a joint statement.
Leading sugar refiners, including Domino Sugar-owner ASR Group,
in 2011 sued the Corn Refiners Association for advertisements using
the term "corn sugar" to describe high-fructose corn syrup, a
widely used sweetener found in snack foods, condiments, fruit
drinks and other products.
The sugar companies argued that high-fructose corn syrup and
sugar are distinct products. They objected to the corn-industry
advertising campaign's description of high-fructose corn syrup as
"natural" and its claim that the ingredient was "nutritionally the
same as table sugar."
The sugar companies sought $1.5 billion in damages.
The case in a federal-district court in Los Angeles came amid
growing anxiety among consumers over sweeteners. That included
high-fructose corn syrup, which had become one of the most oft-seen
ingredients on grocery labels. Critics of the sweetener argue it
has played a starring role in the obesity problem in the U.S.
The two sides said in their joint statement that they would
"continue their commitments to practices that encourage safe and
healthful use of their products, including moderation in the
consumption of table sugar, high fructose corn syrup and other
sweeteners."
A year after the initial lawsuit, corn-refining giants including
ADM and Cargill Inc. countersued, arguing that sugar companies
deceived consumers by claiming they would be healthier if they
consumed foods and beverages that contained processed sugar rather
than high fructose corn syrup.
In 2012, the U.S. Food and Drug Administration rejected an
appeal by America's corn refiners to change the sweetener's name on
food packages from high-fructose corn syrup to corn sugar. The
sugar industry said the rival sector's move was spurred by waning
sales of the controversial ingredient.
Write to Jesse Newman at jesse.newman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 20, 2015 18:53 ET (23:53 GMT)
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