Hot Potato: Redner’s Lawsuit Alleges Frozen French Fry Cartel

Redner’s Markets, an employee-owned regional grocery chain, has filed a lawsuit against the largest U.S. potato processors, alleging they colluded to fix prices on frozen potato products, driving up costs for consumers. The lawsuit, filed on Nov. 15 in the Northern District Court of Illinois, accuses Lamb Weston, McCain Foods, J.R. Simplot Co., and Cavendish Farms—which together control 97% of the $68 billion U.S. frozen potato market—of violating antitrust laws.

The lawsuit claims that the companies implemented coordinated pricing hikes in 2021 and 2022, raising frozen potato product prices by 47% from July 2022 to July 2024, even as their input costs peaked in 2022 and then steadily declined. According to Redner’s, these actions led to unprecedented profit margins, with a former Lamb Weston executive reportedly stating in 2023 that the industry had “never seen margins this high in the history of the potato industry.”

The lawsuit further alleges that the companies avoided competition by mutually respecting each other’s market shares and took steps to conceal their collusion. Lamb Weston, for instance, allegedly instructed managers to use texting instead of emails to discuss competitor pricing, avoiding the creation of discoverable records in case of an antitrust investigation.

Redner’s Markets Responds

Headquartered in Reading, Pennsylvania, Redner’s Markets operates 44 grocery stores and 24 Quick Stop convenience stores across Pennsylvania, Maryland, and Delaware. Eric B. White, director of marketing and communications for Redner’s, emphasized the company’s commitment to fair pricing:

“Artificially inflated food prices affect families and communities everywhere, making it harder for consumers to access affordable groceries. This lawsuit is about accountability and ensuring a fair marketplace. By taking action against anticompetitive practices, Redner’s reinforces its mission to uphold fair pricing and stand up as a champion for its customers by working tirelessly to ensure the affordability and quality they deserve.”

The lawsuit comes amid broader concerns about price gouging in the grocery industry, a topic that has drawn political scrutiny. The companies named in the lawsuit have not yet commented on the allegations.