Hadley v. Kellogg Sales Co.

243 F. Supp. 3d 1074, 2017 WL 1065293, 2017 U.S. Dist. LEXIS 40825
CourtDistrict Court, N.D. California
DecidedMarch 21, 2017
DocketCase No. 16-CV-04955-LHK
StatusPublished
Cited by72 cases

This text of 243 F. Supp. 3d 1074 (Hadley v. Kellogg Sales Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hadley v. Kellogg Sales Co., 243 F. Supp. 3d 1074, 2017 WL 1065293, 2017 U.S. Dist. LEXIS 40825 (N.D. Cal. 2017).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

LUCY H. KOH, United States District Judge

Plaintiff Stephen Hadley (“Plaintiff’) brings the instant suit against Defendant Kellogg Sales Company (“Defendant”) for allegedly misleading statements on Defendant’s food product packaging. Before the Court is Defendant’s Motion to Dismiss. ECF No. 44 (“Mot.”). Having considered the parties’ briefing, the relevant law, and the record in this case, the Court GRANTS Defendant’s Motion to Dismiss.

I. BACKGROUND

Á. Factual Background

Defendant is a “multi-billion dollar food company that manufactures, markets, and sells a wide variety of cereals and bars, among other foods.” ECF No. 27, First Amended Complaint (“FAC”) ¶ 109. Defendant is allegedly “the world’s leading producer of cereal.” Id. Defendant allegedly has “positioned itself in the market as a purportedly ‘health/ brand of processed food, by using various labeling statements to suggest its foods, especially its cereals and bars, are healthy choices.” Id. ¶ 113.

Plaintiff “has been a frequent cereal eater for many years.” Id. ¶366. Over the past several years, Plaintiff has purchased Defendant’s breakfast cereals and cereal bars. Id. ¶ 367-68. During that time period, Plaintiff allegedly “tried to choose [1083]*1083healthy options, and has been willing to pay more for cereals he believes are healthy.” Id. at 366.

This case concerns statements on the packaging for breakfast cereals and cereal bars sold by Defendant that allegedly indicate that Defendant’s products are healthy when “excess sugar” allegedly causes those products to be unhealthy. Plaintiff alleges that twelve of Defendant’s product lines are sold with misleading packaging. See FAC ¶¶ 122-23. Those product lines are (1) Kellogg’s Raisin Bran, (2) Kellogg’s Krave, (3) Kellogg’s Frosted Mini-Wheats, (4) Kellogg’s Smart Start—Original Antioxidants, (5) Kellogg’s Crunchy Nut, (6) Nutri-Grain Cereal Bars, (7) Nutri-grain Soft-Baked Breakfast Bars, (8) Nutri-Grain Oat & Harvest Bars, (9) Nutri-Grain Harvest Hearty Breakfast Bars, (10) Nu-tri-Grain Fruit Crunch Granola Bars, (11) Nutri-Grain Crunch Crunchy Breakfast Bars, and (12) Nutri-Grain Fruit & Nut Chewy Breakfast Bars. Id. Some of these product lines have multiple variants such that there are 53 products total that Plaintiff alleges are being sold with packaging that is misleading. Id.

In general, Defendant’s products are alleged to contain 10 to 19 grams of total sugar per serving and are 20 to 40% sugar by calorie. Id. However, the FAC indicates that there is a difference between “total sugar,” which is composed of all sugar in a product, including those provided by fruit, and “added sugar,” which is composed of sugar that does not naturally occur in the ingredients of the product. Id.

The FAC alleges that the consumption of added sugar (as opposed to total sugar) can have significant health impacts on individuals. Specifically, the FAC alleges that people in the United States consume excess added sugar, that people can become addicted to added sugar, and that excess added sugar consumption is linked to metabolic syndrome, type 2 diabetes, cardiovascular disease, liver disease, obesity, inflammation, high cholesterol, hypertension, Alzheimer’s disease, and some cancers. FAC ¶¶ 9-108. This link allegedly has been shown in multiple studies where the subjects of the study consumed 35 to 75 grams of added sugar (the amount of sugar in 1 to 2 cans of soda) per day. Id.

Moreover, the FAC alleges that the American Heart Association (“AHA”) has found that a person is “safe” to consume up to 5% of his or her daily calories in added sugar, which amounts to approximately 25 grams of added sugar on a 2000 calorie diet. Id. ¶ 25. On the other hand, the United States Food and Drug Administration (“FDA”) has concluded that the Daily Recommended Value (“DRV”) of added sugars is 10% of a person’s daily calories, or approximately 50 grams of added sugar. Based on these values, Plaintiff alleges that Defendant’s products have a higher percentage of total sugar per serving (2(M0% of total calories per serving) than the daily “safe” percentage of added sugar recommended by the AHA or the DRV recommended by the FDA. Id. The FAC does not explain why the per-serving total sugar percentage in the products should be compared to the recommended daily added sugar consumption percentage suggested by the AHA and the FDA.

Plaintiff alleges that the packaging for Defendant’s products contains multiple statements touting the health and wellness benefits of consuming Defendant’s products. For example, the packaging for Defendant’s products contains statements like “Heart Healthy,” “Great taste that does your heart good,” “Start with a healthy spoonful,” “Invest in your health invest in yourself,” “nutritious,” “Good source'* of whole grains,” and “good source of fiber.” FAC ¶¶ 127-219.

[1084]*1084.As an examples Plaintiff alleges that Raisin Bran contains the following “health and wellness” claims:

a. “HEART HEALTHY”
b. “Kellogg’s Heart Healthy Selection”
c. “GREAT TASTE THAT DOES YOUR HEART GOOD”
d. “HEART HEALTHY / Whole grains can help support, a healthy lifestyle.”
e. “+ HEART HEALTH + / Kellogg’s Raisin Bran / With crispy bran flakes made from whole grain wheat, all three varieties of Kellogg’s Raisin Bran are good sources of fiber.”
f. “Start with a healthy Spoonful”
g. “Invest in your health invest in yourself’
h. “Get health & nutrition tips at Kel-loggs.com/Healthylnvestments”
i. “Kellogg’s offers a full breakfast portfolio that features essential nutrients to help you start right and make the most of.every day.” [picturing Raisin Bran]
j. “NUTRIENTS FOR EVERY DAY/ Kellogg’s breakfasts offer the nutrients our bodies want to work and feel their best.”
. k. “A serving of Kellogg’s cereals with one cup of low-fat milk offers a tasty combination of carbs and protein that helps recharge your body. Protein helps you rebuild and carbs help you refuel.”
l. “A great way to START THE DAY / A breakfast of Kellogg’s cereal and milk is nutritious at its most delicious; Every spoonful has ■ grains to help recharge your body. So go ahead, .pour your favorite bowl of crunchy goodness. It just ■fuels right!”
m. “Goodness of Simple Grain”
n. Whole Grains Council Stamp
o. “FIBER / Fiber, like bran fiber, plays a very important party in your digestive health and overall well-being,”
p. “MADE WITH REAL FRUIT” ■
q, “REAL FRUIT / Delicious raisins add a sweetness you’ll love to every morning”
r. “BREAKFAST BRAINPOWER”

Id. ¶ 128.

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243 F. Supp. 3d 1074, 2017 WL 1065293, 2017 U.S. Dist. LEXIS 40825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hadley-v-kellogg-sales-co-cand-2017.