Rappers Snoop Dogg and Master P claim their foray into the cereal business went stale because of the “diabolical actions” of Minnesota cereal maker Post Consumer Brands and Walmart.
The rappers’ company, Broadus Foods, Tuesday sued Post — its manufacturing partner — and retail giant Walmart for “collusion and conspiracy” in allegedly crippling sales of the rappers’ cereal line.
“Post essentially worked with Walmart to ensure that none of the boxes of Snoop cereal would ever appear on store shelves,” according to the suit filed in Dakota County District Court.
In a statement to the Star Tribune, Post said shoppers didn’t take to Snoop cereals.
“Post Consumer Brands was excited to partner with Broadus Foods, and we made substantial investments in the business,” the statement said. “We were equally disappointed that consumer demand did not meet expectations.”
Arkansas-based Walmart said in a statement that that “many factors affect the sales of any given product, including consumer demand, seasonality and price, to name a few.”
Lakeville-based Post Consumer Brands, an arm of St. Louis-based Post Holdings, is the nation’s third largest cereal maker, best known for its Honey Bunches of Oats brand. Post also manufactures cereal for other companies.
Post initially offered to buy Broadus Foods’ cereal line, but Snoop Dogg and Master P turned down the offer, according to the suit. Broadus Foods, which also makes oatmeal, grits and pancake mix under the Momma Snoop brand, derives its name from Snoop’s real name, Calvin Broadus.
In December 2022, Broadus Foods and Post signed a partnership agreement calling for Post to manufacture and distribute Snoop cereals. Profits would be split between the two companies, the suit said.
Snoop’s and Master P’s cereals come in three flavors: Fruity Hoopz with Marshmallows, Frosted Drizzlers and Cinnamon Toasteez. “Each flavor is branded with iconic cartoon characters who teach kids valuable life lessons while they enjoy their breakfast,” according to the suit.
The cereals were launched nationwide in July.
But Post and Walmart — Post’s largest customer — hiked the price of Snoop cereal and “intentionally hindered its sale to the public to force Broadus Foods out of the market,” the suit said. Post and Walmart refused to place Snoop cereal on store shelves, Broadus Foods claims.
“Essentially, because Snoop Dogg and Master P refused to sell Snoop cereal in totality, Post entered a false agreement where they could choke Broadus Foods out of the market, thereby preventing Snoop cereal from being sold or produced by any competitor,” the lawsuit claims.
Broadus Foods alleges in the lawsuit that Walmart kept boxes of Snoop cereal in its stockrooms with codes saying they should not be put on the shelves.
Post and Walmart claim Broadus Foods is responsible for “chargebacks” on sales of Snoop cereals, the suit said. But Broadus Foods blamed the chargebacks on the defendants.
In the retail trades, chargebacks are generally financial penalties assessed to suppliers when products are shipped incorrectly.
In the suit, Broadus Foods is asking for monetary damages from both companies and accuses Post of breach of contract, breach of fiduciary duty and negligent misrepresentation among other things.
Prominent civil right attorney Ben Crump is among the lawyers representing Broadus Foods. In the suit, Broadus Foods said it’s one of the few “high-profile minority-owned businesses within the food industry.”
In a January 2023 press release heralding their deal, Post and Broadus Foods said their collaboration “is backed by their shared passion for feeding families and strengthening diverse communities.”
Snoop Dogg shot to fame as a rapper in the 1990s and went on to become a full-blown celebrity. His non-music business pursuits include investments in food and pet care products, as well as in the alcohol and cannabis industries.
Master P, born Percy Miller, also found fame as a rapper in the 1990s. His son, Hercy Miller, was a basketball star at Minnehaha Academy in Minneapolis in the early 2020s.
