SK Foods: Difference between revisions
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'''SK Foods''' was a [[California]]-based [[agribusiness]] company. It was a major producer of [[tomato]]es, producing over half of the US supply at its formation in 2005.<ref>[http://www.latimes.com/business/la-fi-salyer-20100430,0,2031356.story New charges filed against California tomato mogul], Los Angeles Times, April 30, 2010.</ref> Former owner [[Frederick Scott Salyer]] was arrested on [[racketeering]] and [[corporate corruption|corruption]] charges in early 2010 as SK Foods was implicated in a 2010 [[United States Department of Justice]] investigation into large scale [[price fixing]] and [[bribery]] in the tomato market. The company allegedly bribed buyers such as [[Frito-Lay]], [[Kraft Foods]] and [[Safeway Inc.|Safeway]] to accept [[mold]]y rotting tomatoes, to pay above-market prices, and to provide SK with information on competitors' activities.<ref>{{Cite web| url=http://www.montereyherald.com/local/ci_15652886?source=rss | work=[[Monterey County Herald]]| title=Tomato king Scott Salyer a man of his past}}</ref> SK Foods filed for [[Chapter 11]] [[bankruptcy]] protection in 2009.<ref>{{Cite web| url=http://thepacker.com/SK-Foods-lenders-force-bankruptcy/Article.aspx?oid=365838&aid=577&fid=PACKER-TOP-STORIES | work=The Packer | title=SK Foods lenders force bankruptcy | date= 8 May 2009 | last=Withers | first=Dawn}}</ref> It was acquired out of bankruptcy by [[Olam International]], based in Singapore. It is now known as Olam Tomato Processors. An associated produce company, Salyer American Fresh Foods, was forced to close. |
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Three buyers and five SK Foods employees pleaded guilty to various corruption charges in early 2010.<ref>[http://www.nytimes.com/2010/02/25/business/25tomatoes.html Bribes Let Tomato Vendor Sell Tainted Food], The New York Times, February 24, 2010.</ref> Salyer pleaded not guilty. {{As of|2010|5}}, he remains in jail in [[Sacramento, California]], awaiting trial. |
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==References== |
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{{Reflist}} |
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[[Category:Agriculture companies of the United States]] |
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[[Category:Companies based in California]] |
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[[Category:Corporate crime]] |
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[[Category:Price fixing convictions]] |
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Revision as of 21:30, 30 May 2012
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