Milling & Baking News - November 1, 2011 - 12

Business 

Lawsuit over HFCS campaign moves forward
LOS ANGELES — A lawsuit claiming a Corn Refiners Association campaign for high-fructose corn syrup is false and misleading will move ahead after a U.S. district court in Los Angeles on Oct. 21 denied a motion from the C.R.A. to dismiss the lawsuit. “We look forward to a final resolution of our case so that the Corn Refiners Association is forced to end its deceptive campaign aimed at misleading American consumers,” said Adam Fox of Squire, Sanders & Dempsey, who argued the case before the court. Audrae Erickson, president of the Washington-based C.R.A., said, “It is important to note that this does not mean the sugar industry’s allegations are true, only that they have alleged enough to get to the next stage of the case on the Lanham Act claim.” The Western Sugar Cooperative in Colorado, Michigan Sugar Co. and C&H Sugar Co. filed the lawsuit on April 22. It said the C.R.A. claim that HFCS is corn sugar is false and misleading. The plaintiffs cited Internet advertising, exhibitions at professional organizations, television commercials, print advertisements and the web site www.sweetsurprise.com. “The sugar industry is attempting to shut down free speech rather than compete in the marketplace,” Ms. Erickson said. She also said she disagreed with the sugar industry’s claim that the C.R.A.’s campaign to defend the merits of HFCS is deceptive. “To the contrary, the educational campaign is science-based and supported by a wide variety of medical and scientific experts,” Ms. Erickson said. The C.R.A. filed a motion to dismiss the lawsuit on Aug. 22. It argued its statements on HFCS are part of an educational campaign as opposed to advertising subject to the federal Lanham Act. The statements focus on the role of HFCS/corn syrup in health and Erickson not on proposing a commercial transaction, according to the C.R.A. Second, the C.R.A. argued that since it is a trade association, it does compete with the plaintiff sugar producers and does not promote or sell any products or services. The court ruled on Oct. 21 the fact that statements relate to a public health issue does not insulate them from regulation under the Lanham Act. The court also ruled the C.R.A. statements were promotional. “Although C.R.A.’s statements do not explicitly say ‘buy’ or ‘purchase’ HFCS, it is clear that the purpose of C.R.A.’s statements is to promote HFCS to purchasers,” the court said. “As a trade organization made up of corn refiners, an economic motive exists, and the statements refer

specifically to high-fructose corn syrup. The statements themselves also clearly are promoting corn syrup to food and beverage purchasers.” The court also addressed the C.R.A.’s claims of HFCS being corn sugar and HFCS being natural. The C.R.A. in September of 2010 filed a petition with the F.D.A. seeking to change the name of HFCS to corn sugar. “Resolution of the citizen petition before the F.D.A. would not resolve the issues raised by the plaintiffs’ suit,” the court said Oct. 21, 2011. “The issue of whether HFCS is just like table sugar has not been placed by Congress within the jurisdiction of the F.D.A. Furthermore, the issues presented here, revolving around allegations of falsity in advertising, do not call into question the F.D.A. expertise.” The F.D.A. also has said HFCS may be labeled as natural when a common enzymatic process is used. The court said the C.R.A. “(cites) no authority for the proposition that the F.D.A. can conclusively determine whether a particular product or substance is natural.” Ms. Erickson did point out the court struck down the sugar industry’s state law claim under the California anti-SLAPP statute, which provides for early dismissals of meritless cases aimed at chilling freedom of expression. SLAPP stands for strategic lawsuit against public participation. The C.R.A. said it thus is entitled to recover certain fees. MBN

Gavilon opens grain origination ofﬁce in Ukraine
OMAHA — Gavilon, L.L.C. has opened a grain origination office in Kiev, Ukraine, and begun commercial activity in Ukraine. As part of the grand opening, more than 100 guests gathered in Kiev. “Gavilon is here to become the reliable partner of choice,” said Victor Khimchenko, general manager. “We offer regional market expertise and proven commodity management capabilities, backed by Gavilon’s global perspective and financial stability.” The Gavilon Ukraine office sources wheat, corn, barley, soybeans and other grains from Black Sea region producers. Additionally, the office offers transportation and logistics services to better serve its customers in that region. All grain origination will be supported by Gavilon’s Geneva office, which conducts activities throughout Europe, the Middle East and North Africa. MBN
12 / November 1, 2011 Milling & Baking News

Utz acquires Massachusetts potato chip company
HANOVER, PA. — Utz Quality Foods, Inc. has acquired The Wachusett Potato Chip Co., Inc., Fitchburg, Mass. Financial terms of the transaction, which includes the Wachusett brand, associated trademarks, distribution routes and a manufacturing facility in Fitchburg, were not disclosed. Founded in 1939, The Wachusett Potato Chip Co. manufactures and distributes potato chips, cheese twists and popcorn primarily in Massachusetts, Rhode Island and New Hampshire. As part of the acquisition, Utz said it plans to increase the potato chip production capabilities at the Fitchburg facility in order to allow for the manufacture of the Utz brand of potato chips at the plant. Edward Krysiak, president of Wachusett, and his two nephews, Barry Krysiak and Greg Krysiak, have agreed to join Utz Quality Foods as key local employees at Wachusett. “They will help maintain and grow the successful Wachusett brand as well as spearhead plans to manufacture the Utz brand from this location,” Utz said. “Ed, Barry and Greg’s personal involvement in the transition and ongoing management of the Wachusett brand will ensure a seamless transition for the longtime loyal customers of The Wachusett Potato Chip Co.” Founded in 1921, Utz produces a full line of snack products, including potato chips, pretzels, cheese snacks, corn products and popcorn, at four manufacturing facilities. MBN
bakingbusiness.com / world-grain.com

http://www.sweetsurprise.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 1, 2011

Table of Contents for the Digital Edition of Milling & Baking News - November 1, 2011