Rapper Snoop Dogg, alongside his business partner Percy “Master P” Miller, has filed a lawsuit in Minnesota against retail giant Walmart and cereal manufacturer Post Foods, the New York Post reported Wednesday.
The duo accuses the defendants of deliberately undermining their venture, Snoop Cereal, through what they claim were acts of sabotage that kept their product out of sight and reach of consumers, according to the New York Post. The heart of the lawsuit revolves around allegations that Walmart relegated Snoop Cereal to storage areas. The lawsuit alleges that the company deliberately coded them as ‘no location’ items, thereby obstructing their path to the store shelves.
The partnership with Post Brands was initially seen as a promising venture to distribute Snoop Cereal across major retailers like Target and Kroger. However, the partnership quickly turned sour. “However, Post, despite agreeing to the partnership, allegedly sabotaged the success of Snoop Cereal by preventing it from reaching consumers through deceptive practices, especially at Walmart,” Crump said in a statement, according to New York Post.
Snoop Dogg and Master P sue Walmart for ‘sabotaging’ Snoop Cereal by ‘intentionally holding boxes in stockrooms and keeping them off the shelves’ https://t.co/mhX9yRq0PY
— Ben Crump (@AttorneyCrump) February 6, 2024
This alleged deceit came to light when the cereal, despite apparent consumer demand demonstrated by initial sales success post its July 2023 launch, seemed perpetually out of stock. Investigations revealed that Walmart’s stockrooms were hoarding the cereal, with explicit instructions not to display them for sale, the outlet reported. (RELATED: Famous Cereal Brand Is Under Investigation After Complaints Of Diarrhea, Vomiting And More)
Broadus and Miller, pioneers in establishing one of the first high-profile black-owned cereal brands with Snoop Cereal in 2022, aimed not only to diversify the grocery sector but also to champion economic empowerment and create opportunities for minority-owned food products. The lawsuit claims that Walmart’s exorbitant pricing of up to $10 per box and the misplacement of the product in unrelated store sections were part of a concerted effort to edge Broadus Foods out of the competitive landscape, the New York Post noted. The said cereal is now being distributed through Amazon priced at $5.99.
“Essentially, because Snoop Dogg and Master refused to sell Snoop Cereal in totality, Post entered [a] false arrangement where they could choke Broadus Foods out of the market, thereby preventing Snoop Cereal from being sold or produced by any competitor,” Crump said, according to the New York Post.
The lawsuit reportedly demands compensation for what they term “diabolical actions,” citing breach of contract, fiduciary duty, and negligent misrepresentation. Walmart’s response to the allegations was non-committal, highlighting its historical support for entrepreneurs without directly addressing the claims. “Many factors affect the sales of any given product, including consumer demand, seasonality, and price to name a few. We will respond as appropriate with the Court once we are served with the complaint,” a spokesperson said, according to Billboard.
Post Brands expressed disappointment over the underwhelming consumer demand for Snoop Cereal. “We were equally disappointed that consumer demand did not meet expectations.”