Chicken Wars: Why Chick-fil-A Is Suing Tyson and Perdue

Chick-fil-A has filed a lawsuit against a number of poultry providers as the fast-food chain claims they unlawfully inflated prices on many of its purchases.

The suit accuses 17 different poultry providers, including big brand names such as Perdue Farms, Tyson Foods, Pilgrim’s Pride, and Sanderson Farms. Chick-fil-A alleges that the companies involved in the case colluded against them to jack up prices and lower output to increase demand.

In the lawsuit that was filed Friday, Chick-fil-A claimed that its distributors "possessed significant market power in the market for broilers" and that "their conduct had actual anticompetitive effects with no or insufficient offsetting pro-competitive justifications."

In addition, the complaint argued that Chick-fil-A “purchased billions of dollars worth of broiler chicken from defendants and/or their co-conspirators throughout the relevant period at prices that were artificially inflated.”

Representatives for Tyson and Perdue told the Wall Street Journal that the companies disagree with allegations and that there is no evidence to support Chick-fil-A’s claims.

Just this year the Justice Department indicted 10 executives related to the poultry industry for conspiring to jack up chicken prices. In October, Pilgrim’s Pride pleaded guilty to limiting competition in chicken product sales and was fined $110.5 million.

As Chick-fil-A heads to court, the fast-food conglomerate continues its effort to compete with major coffee distributors and introduced a slate of new menu items.

The chain added two new coffee drinks to its menu as customers can now buy a Mocha Cream Cold Brew beverage and Thrive Farmers Hot Coffee, as well as a Chocolate Fudge Brownie dessert item.

“We are always looking to add fun and flavorful offerings to our menu, and these new dessert and snack options make perfect additions as we enter the fall season,” Leslie Neslage, director of menu and packaging at Chick-fil-A, said in a statement.

“We received positive responses when we tested the Chocolate Fudge Brownie and Mocha Cream Cold Brew in select markets last year, and we hope our customers will be as excited as we are to have these sweet treats join our menu nationwide.”