The billion-dollar lawsuit between sugar and corn industries ended in an off-court settlement. The deal came midtrial in a federal court in Los Angeles.
Global leader American Sugar Refining Group stressed in their 2011 lawsuit that Corn Refiners Association's high fructose corn syrup advertising campaign that describes the product as 'natural' is deceitful. Sugar processors sought $1.5 billion in damages from corn refiners and agricultural companies such as Cargill and Archer Daniels Midland after the latter companies' 'corn sugar' rebranding.
The corn companies retaliated and sought for $530 million in damages after the sugar groups' release of misleading and false statements. These include a remark that consumers can get hooked on corn syrup that is high in fructose, which is as addictive as crack cocaine. The counter lawsuit also highlighted a false statement in the sugar group's newsletter in which corn syrup was described as a risk factor in cancer and obesity.
The bittersweet lawsuit rose during a large decrease in the demand for sweeteners, especially corn syrup. The decline in the demand among U.S. consumers can be traced to the growing concerns over the high risks of diabetes and obesity. The corn refiners argued that the decline did not cause much damage to the sugar companies who raked in profits and record sales when the misleading campaign was released.
"The parties had been trying to work on an agreement for a month before trial, and these things take time," said the sugar processors' attorney, W. Mark Lanier. Details of the off-court settlement, which happened almost three weeks into the trial, were not disclosed.
"The Parties 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," states the Corn Refiners Association's press release published online on Nov. 20.
The U.S. Department of Agriculture's statistics show that in 1999, the average American consumer goes through 85.3 pounds of corn-based sweeteners and 66.4 pounds of sugar per year. In 2014, the annual consumption of corn-based sweeteners dropped to 60.7 pounds. In contrast, sugar consumption rose to 68.4 pounds.
In 2012, the U.S. Food and Drug Administration set a rule that corn syrup should not be labeled as sugar.
Photo: David Pacey | Flickr
