Kemin Files Suit Against Cognis over Lutein Claims

DES MOINES, Iowa--Kemin Foods filed suit in the U.S. Federal District Court for the Southern District of Iowa against Cincinnati-based Cognis Corp. for making advertising claims that allegedly fail to differentiate Kemin's purified lutein from Cognis' lutein esters. In addition, Kemin (www.kemin.com) alleged that Cognis (www.cognis.com) is not providing labeling guidelines as were required by a 1999 court settlement between the two companies. Cognis released a statement disputing Kemin's new allegations.

The prior suit, which was filed in August 1998 by Kemin Foods against Dusseldorf, Germany-based Henkel Corp., was settled in July 1999. (In late 1999, the German company transferred approximately 50 divisions that made up its Chemical Business segment--including Henkel Nutrition & Health Group--into a separate legal entity called Cognis Corp.) In the 1998 case, Kemin Foods claimed that Henkel's marketing led consumers to believe they were purchasing lutein (in the form of Henkel's product, Xangold), when they were actually purchasing lutein esters. Henkel countersued, disputing the statements Kemin made against its product. The companies reached a settlement, which allowed Henkel to continue to inform consumers of the benefits of Xangold lutein esters, and allowed Kemin to refer to FloraGLO Lutein as "purified lutein."

In the current lawsuit, filed on Dec. 10, Kemin is challenging Cognis' marketing verbiage and is asking the court to put "an end to Cognis' false claims about lutein esters that confuse the marketplace about the differences between the two compounds" and order "verification that Cognis is providing all its customers with labeling guidelines that communicate the distinct differences between lutein and lutein esters."

According to Kemin, numerous communications have been conducted between the two companies to discuss disagreements in marketing verbiage. The two companies agreed to meet in person to discuss their differences, but were unable to come to an agreement, according to Steve Hanson, director of marketing for Kemin Foods. After communicating through letters again and reviewing literature distributed by Cognis at SupplySide West in Las Vegas, Hanson said there was no other option but to take their disagreements to court.

"We want to ensure that customers and consumers are being provided information that is truthful and understandable, and that there is not any confusion in the marketplace regarding the differences between lutein and lutein esters," Hanson said. "That was our goal in 1999 and that is our goal today. We further would like to see that Cognis complies with the settlement agreement that has been in place since 1999."

Cognis responded in a statement that Kemin's allegations are unsubstantiated. "Cognis makes truthful, scientifically substaniated claims and non-misleading statements regarding its lutein ester product Xangold," said Janetta Walls, Cognis Corp. vice president and general counsel. "Cognis has carefully adhered to its commitments in the 1999 settlement agreement between the two companies. In fact, over the course of the last several months, Cognis has, through several letters to Kemin, repeatedly demanded that Kemin cease the false and misleading claims they are making in the marketplace about both companies' products."