ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, February 7, 1996 TAG: 9602070039
SECTION: BUSINESS PAGE: C-6 EDITION: METRO
DATELINE: ORLANDO, FLA.
SOURCE: Associated Press
MANUFACTURERS of three-fourths of the nation's carbon dioxide supply were accused of rigging bids for decades.
Four major carbon dioxide suppliers have agreed to pay more than $55 million to settle a federal price-fixing lawsuit filed by Florida and thousands of food processors and beverage companies.
But the payments could rise beyond $100 million from separate agreements with large customers such as Coca-Cola Co., PepsiCo Inc., Anheuser Busch Inc. and Sara Lee Corp., according to attorneys in the 4-year-old case.
The four suppliers involved are: Liquid Carbonic Industries Corp. of Chicago; Liquid Air Corp. of Walnut Creek, Calif.; BOC Group Inc. of Murray Hills, N.J.; and Archer-Daniels-Midland Co. of Decatur, Ill.
The carbon dioxide companies, which manufacture more than three-fourths of the nation's bulk supply, were accused of divvying up the business and rigging bids over three decades.
About 20,000 plaintiffs - mostly food, meat packing and bottling companies - were involved in the 1992 lawsuit. Several didn't join in the settlements and have decided to go to trial.
Carbon dioxide is what puts the fizz in carbonated beverages. It is also used to treat water supplies and to quick-freeze food and other products, among other applications.
Some officials had said the alleged price-fixing increased the costs for processed foods and beverages, while others maintained that the actual component cost of using carbon dioxide in each product is negligible.
Florida is to receive slightly more than $1 million, a small drop in the bucket compared to the others.
LENGTH: Short : 41 linesby CNB