A $1.1 billion antitrust settlement, one of the largest in U.S. history, is nearing closure. Six of the world’s largest vitamin and supplement manufacturers are accused of conspiring to overcharge for their products for the last 10 years. The vitamins produced by Hoffman La-Roche Ltd. of Switzerland, German-based BASF AG, Rhone-Poulance S.A. of France and three Japanese pharmaceutical companies are ingredients in a wide range of foods including breakfast cereal, orange juice and animal feed. The group allegedly convened to divide the global market and raise prices for common vitamins such as A, C, E and beta-carotene.
Tyson Foods Inc., Quaker Oats Co., and others are filing additional lawsuits because they believe the settlement price is too low. Individuals are also pursuing the cartel in a number of state courts. The companies that receive payment are not obliged to pass the proceeds to customers. Attorney General Janet Reno levied a $725 million fine against Hoffman-LaRoche and BASF AG. An investigation by the U.S. Justice Department resulted in criminal charges and jail time for Hoffman-LaRoche executives, a first for foreign citizens.
Sales of dietary supplements in the U.S. reached $10.4 billion in 1999, almost evenly divided between vitamins/minerals (56%) and herbs (44%). 71 percent of U.S. households use dietary supplements, an increase of three percent from 1998.
Source: Natural Foods Merchandiser
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