Court Dismisses Claims Against WhiteWave with Prejudice
Citing the settlement of similar class claims in a Florida court and plausibility
issues, a federal court in California has dismissed with prejudice a putative
class action alleging that companies misbrand products with an evaporated
cane juice (ECJ) designation and sell products not meeting the standard
of identity for yogurt and milk, including soymilk and almond milk. Ang v.
WhiteWave Foods Co., No. 13-1953 (N.D. Cal., decided December
10, 2013). According to the court, the California plaintiffs, who filed their
complaint after the class action was filed in Florida, were members of the
class, knew about that settlement and had an opportunity to, but did not,
object to it. Thus, the court found their ECJ and yogurt claims barred by res
judicata.
As for claims that consumers are confused by use of the terms “soymilk,” “almond milk,” and “coconut milk” in the names of Silk® products, an alleged violation of the standard of identify for milk, the court found that (i) the Food and Drug Administration may not have yet arrived at a consistent interpretation of its milk description as to milk substitutes; and (ii) these names accurately describe the products and “clearly convey the basic nature and content of the beverages, while clearly distinguishing them from milk that is derived from dairy cows.” Analogizing the plaintiffs’ claims to those raised in unsuccessful litigation alleging that “Cap’n Crunch’s Crunch Berry” cereal label misled consumers to believe the product contained real fruit, the court said consumer confusion was “highly improbable.”
The court further stated, “Plaintiffs essentially allege that a reasonable
consumer would view the terms ‘soymilk’ and ‘almond milk,’ disregard the
first words in the name, and assume that the beverages came from cows. The
claim stretches the bounds of credulity. Under Plaintiffs’ logic, a reasonable
consumer might also believe that veggie bacon contains pork, that flourless
chocolate cake contains flour, or that e-books are made out of paper.”
Meanwhile, WhiteWave Foods Co. has announced that it will acquire
Earthbound Farm, “one of the country’s leading organic food brands.” The
$600 million cash deal will expand WhiteWave’s dairy product offerings to an
extensive line of organic produce, both raw and frozen. Subject to regulatory
approvals and closing conditions, the agreement is expected to be completed
in the first quarter of 2014. See WhiteWave Foods Co. News Release, December
9, 2013.
