Snoop Dogg (Calvin Broadus) and Master P (Percy Miller) sued Walmart and Post for alleged sabotage of a cereal brand partnership, despite initial plans to be a major supporter, citing "underhanded dealing" and "diabolical actions."
Impending Lawsuit on Alleged Brand Sabotage
In a lawsuit filed on Tuesday, the rappers' company, Broadus Foods, alleges that after partnering with Post, the company covertly made sure that Snoop Cereal would either not reach consumers or would face extremely high costs, erasing any potential profit.
With lawyer Benjamin Crump leading the charge, Broadus Foods alleges that this action was retaliation because the rappers declined to sell their company to Post. According to the complaint, Snoop Dogg and Master P's refusal to sell Snoop Cereal led Post to create a deceptive agreement to stifle Broadus Foods, preventing Snoop Cereal from being sold or produced by competitors.
The lawsuit also included Walmart as a defendant, claiming the retail giant played a significant role in Post's alleged misconduct, stating that Post collaborated with Walmart to prevent Snoop Cereal boxes from being displayed on store shelves.
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Retail Giants' Counter-Responses
In a response statement, a Post spokeswoman told Billboard that Post Consumer Brands was enthusiastic about partnering with Broadus Foods and made significant investments in the business but was disappointed when the consumer demand did not meet expectations.
Meanwhile, in a separate statement, a Walmart spokesperson said they value supplier relationships and have a strong track record of supporting entrepreneurs. Many factors influence product sales, such as consumer demand, seasonality, and pricing, and Walmart said to respond accordingly to the Court once the complaint is received.
Broadus Foods' Partnership with Post
According to the complaint filed on Tuesday, Snoop and Master P started Broadus Foods and Snoop Cereal in 2022 to bring diversity to the food industry and create a lasting legacy for families. When they proposed a partnership with Post for production and distribution, they claimed the "breakfast juggernaut" tried to purchase their company immediately, but they declined.
After failing to acquire the emerging company, they allege that Post agreed to a partnership to produce and distribute the products, treating Snoop Cereal as one of its brands, including distribution to major retailers like Walmart, Target, Kroger, and Amazon. However, they claim that Post was actively trying to sabotage the new company behind the scenes.
Unbeknownst to Broadus Foods, Post was not aligned with its goals and did not plan to treat Snoop Cereal on par with its brands. Instead, according to Crump, Post aimed only to give appearances of following the agreement.
Alleged Misconduct at Walmart
According to the lawsuit, the most severe case of alleged mistreatment occurred at Walmart. Snoop and Master P assert that Snoop Cereal initially sold well at the large chain, but Walmart's system started falsely indicating that the product was out of stock.
Upon closer examination by store employees, the company lawyer discovered that each store had multiple boxes of Snoop Cereal in their stockrooms but were coded not to be displayed on the store shelves. Unlike other Post-branded cereal boxes in the stockrooms, these Snoop Cereal boxes had been stored for months without being offered to customers.
The lawsuit alleges that Post violated its agreements and fiduciary duty to Broadus Foods, defrauded the smaller company, and made negligent misrepresentations. The case accuses Walmart of tortious interference by cooperating with Post's plan and aiding in breaching its fiduciary duty. Additionally, the lawsuit claims that both companies engaged in a civil conspiracy by collaborating.
