“Tyson” ruled to stop ad campaign
May 5, 2008
Imposed last week, a judge in Richmond, Virginia ruled the poultry giant has 14 days - until 15 May - to remove advertising that claims its products are raised without antibiotics.
The firm said it has already contacted stores about removing POP (point-of-purchase) advertising.
The action was sparked off by rival poultry processing companies Perdue Farms of Maryland and Sanderson Farms of Mississippi. The two companies had filed the suit against Tyson in a joint injunction that sought to stop Tyson’s ad campaign.
The competitors argued that Tyson’s marketing campaign for the “raised without antibiotics thought to lead to drug resistance in humans” claim misleads consumers because none of the companies use those types of drugs. Sanderson said it lost $4 million in sales since last year as a result of the Tyson campaign, while Perdue contended it lost $10 million.
What does Tyson Foods have to say? What else?
“We’re disappointed the motion for a stay has been denied and are evaluating our legal options”.
Tyson reported a loss of $5 million, or 2 cents a share, in the three months ended March 29, compared with a profit in the same period a year ago of $68 million, or 19 cents a share. The loss in this fiscal year’s second quarter includes $47 million in charges for previously announced plant closings and asset impairments.
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