LAKEVILLE, Minn. — Editor's note: The video above first aired on KARE 11 in December 2022.
The company owned by A-list rappers Snoop Dogg and Master P is ready to drop its agreement with Lakeville-based Post cereal brands like it's hot.
A lawsuit filed in Dakota County Tuesday, alleges Post "had no intention" of following through on the deal to make, distribute and promote the rappers' new cereal brand.
The lawsuit filed by Broadus Foods, LLC, accuses Post Consumer Brands, LLC, Post Foods, LLC, and Walmart, Inc., of failing to honor their agreement reached in late 2022 to make the new Snoop Cereal readily available across major retailers, the largest distributor of which being Walmart.
While the lawsuit said Post tried to buy Snoop Cereal outright, the Broadus business partners "believed that selling the brand would destroy the whole purpose of leaving the company to their families as legacy."
Broadus lawyers allege that's why Snoop Cereal was "choked out" of the market.
"Essentially, because Snoop Dogg and Master refused to sell Snoop Cereal in totality, Post entered false arrangement where they could choke Broadus Foods out of the market, thereby preventing Snoop Cereal from being sold or produced by any competitor," it read.
Despite the cereal's initial success, court documents allege the product couldn't be found on Walmart shelves shortly following its launch. The company said it later learned from employees at various stores that the cereal was in their stockrooms, but the boxes were "coded to not be on the store shelves."
"Unlike the other Post branded boxes of cereal around them, these Snoop Cereal boxes had been in the stockrooms for months without ever being made available to customers," the lawsuit claims.
Broadus Foods said that because Post and Walmart failed to honor their agreement, it resulted in losses that not only "cut into" profits, but
"Broadus Foods seeks to hold Defendants accountable and to preserve Snoop Dogg and Master P's dreams of creating legacy for their families, adding diversity to the food industry, and giving back to their community," the lawsuit said.
In response to the suit, Post claimed "consumer demand did not meet expectations."
Post Consumer Brands was excited to partner with Broadus Foods and we made substantial investments in the business. We were equally disappointed that consumer demand did not meet expectations.
In response to its part in the suit, representatives for Walmart said they'll wait to see what plays out in court.
Walmart values our relationships with our suppliers, and we have a strong history of supporting entrepreneurs. 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.
Master P came by KARE 11 in December of 2022, just after the initial deal for Snoop Cereal was reached. He said the brand was created to "build economic empowerment," "add diversity into these stores to be able to have an African-American-owned company," and to make "delicious foods accessible to all."
He added, "Post believed in our brand and Post believed in diversity."
Broadus Foods is seeking $50,000 in damages for alleged expectancy damages; actual damage; lost profits; costs of marketing and other expenditures; specific performance; lost opportunities; lost reputation; legal costs and attorney's fees and punitive damages.
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