In a legal battle that pits prominent rapper Snoop Dogg (Legal name is Calvin Broadus), and his co-founder Percy "Master P" Miller against retail giant Walmart and Post Consumer Brands, allegations have surfaced accusing the companies of deliberately undermining the success of their cereal brand, Snoop Cereal. The lawsuit, filed in Minnesota, claims that the defendants engaged in practices that effectively limited the cereal's availability to consumers, thereby sabotaging its market presence.
According to the lawsuit, Walmart and Post engaged in a series of "diabolical actions" that included keeping Snoop Cereal hidden in storage rooms, marking the products with "no location" coding to prevent their placement on store shelves, and exorbitantly pricing the cereal at over $10 per box. Furthermore, the cereal was allegedly placed in inappropriate sections of the store, such as the baby aisle, rather than alongside other breakfast cereals.
The partnership, which was initially formed with the intention of distributing Snoop Cereal in major retailers like Target and Kroger, turned sour after Broadus and Miller declined an offer from Walmart to buy out their brand entirely. "Essentially, because Snoop Dogg and Master P refused to sell Snoop Cereal in totality, Post entered [a] false arrangement where they could choke Broadus Foods out of the market," stated Ben Crump, the attorney representing Broadus and Miller, who is known for representing high-profile cases including that of Tyre Nichols' family last year.
Launched in July 2023, Snoop Cereal was met with enthusiasm, with consumers initially scrambling to locate and purchase the product. However, within months, the cereal became scarce on store shelves, leading to customer complaints and investigations by Walmart employees, who discovered unsold boxes languishing in stockrooms.
Broadus Foods, established in 2022 as one of the first high-profile black-owned cereal companies, was founded with the mission of promoting economic empowerment and diversity in the grocery industry. The lawsuit alleges that the actions of Walmart and Post not only breached their contractual and fiduciary duties but also obstructed Broadus Foods' goal of creating opportunities for minority-owned food products and brands.
In response to the lawsuit, Walmart issued a statement emphasizing its history of supporting entrepreneurs and attributing the sales performance of products to various factors, including consumer demand and seasonality. The company stated its intention to respond appropriately once the complaint is officially served. Post Consumer Brands, on the other hand, expressed disappointment that consumer demand for Snoop Cereal did not meet expectations despite the company's substantial investments in the partnership with Broadus Foods.
As the legal proceedings unfold, the lawsuit sheds light on the challenges faced by minority entrepreneurs in the food industry and raises questions about the ethical responsibilities of major retailers and brands in their dealings with smaller, minority-owned businesses.
