Why is Snoop Dogg Suing Walmart Over Cereal?

In a surprising turn of events, rap icons Snoop Dogg and Master P have taken legal action against retail giant Walmart and packaged goods company Post Consumer Brands over their cereal brand. The lawsuit, filed by Broadus Foods, the company founded by Snoop Dogg (Calvin Broadus) and Master P (Percy Miller), alleges deceptive practices and sabotage by the defendants, leading to the failure of their cereal brand, Snoop Cereal.

Snoop Dogg makes cereal?

Broadus Foods, founded by Snoop Dogg and Master P, aims to create a family-owned company that promotes diversity in the food industry and offers affordable, high-quality products. The company's mission is rooted in providing opportunities for minority-owned products and contributing to humanitarian causes addressing hunger and homelessness.

Snoop Cereal, along with other breakfast foods like oatmeal, grits, pancake mix, and syrup under the Momma Snoop brand, seeks to continue the legacy of Momma Snoop's passion for feeding families and making a difference in communities.

What Snoop and Master P allege

According to the complaint filed in Minnesota's Dakota County District Court, Walmart and Post Consumer Brands allegedly engaged in deceptive practices after Broadus Foods rejected an offer to buy the company. Instead, the companies entered into a profit-sharing agreement for Post Consumer Brands to manufacture and distribute Snoop Cereal.

The rappers claim that Post Consumer Brands did not treat Snoop Cereal equally and deliberately hindered its success, attempting to underhand them in profits. Allegations include keeping the cereal hidden in stockrooms, falsely reporting it as out of stock, and pricing it at over $10 per box, contrary to Broadus Foods' goal of offering affordable food.

What the other side alleges

In response to the lawsuit, Post Consumer Brands stated that it was excited about the partnership with Broadus Foods and had made substantial investments in the business. However, the company expressed disappointment that consumer demand did not meet expectations.

Walmart also emphasized its history of supporting entrepreneurs and stated that various factors affect product sales, such as seasonality, promising to respond once served with the complaint.

What's next?

Legally, the next steps involve the court proceedings in Minnesota's Dakota County District Court, where the lawsuit was filed. Both parties will present their evidence and arguments, and a judgment will be made based on the merits of the case. It remains to be seen how the court will interpret the allegations and whether Broadus Foods will be successful in its claims against Walmart and Post Consumer Brands.

Bottom line

The lawsuit filed by Snoop Dogg and Master P against Walmart and Post Consumer Brands shines a light on the complexities of business partnerships and the challenges faced by minority-owned companies in the food industry. It also underscores the importance of transparency, fairness, and integrity in business dealings. As the legal battle unfolds, it will be interesting to see how it impacts the future of Broadus Foods, the company’s goal of helping people save money on groceries, and the broader conversation surrounding diversity and inclusion in the grocery store industry.

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Georgina Tzanetos Georgina Tzanetos is a former financial advisor who has been active in financial media for the past six years. She holds a master's in political economy from NYU, where she studied distressed labor markets.

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