A Lawsuit for Breakfast: Walmart & Post Sued After Snoop Dogg Cereal Deal Sours

Snoop Cereal lawsuit Walmart & Post
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Snoop Cereal lawsuit Walmart & Post
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Photo Credit: Instagram / Snoop Cereal

Snoop Dogg isn’t happy with the marketing efforts behind his Snoop Cereal—so he’s suing Walmart & Post. Here’s what we know.

Broadus Foods was founded by Calvin Broadus (Snoop Dogg) and Percy Miller (Master P) to make affordable breakfast cereal. The cereal line was originally supposed to be called Snoop Loopz, but Kellogg’s took issue with that and the brand ended up with the name Snoop Cereal. Broadus Foods entered into a partnership and promotion agreement with Post Foods to distribute the cereal to major retailers—with a focus on Walmart.

According to the lawsuit, Post offered to purchase Broadus Foods outright. The two rappers balked at the idea, but did enter into the distribution agreement with a profit-sharing agreement in place. But the lawsuit alleges that Post did not enter into this deal with good faith. “Unbeknownst to Broadus Foods, Post was not on board with their goals and dreams and had no intention of treating Snoop Cereal equally as its own brands,” the lawsuit alleges.

“In reality, Post ensured that Snoop Cereal would not be available to consumers or that it would incur exorbitant costs that would eliminate any profit to Broadus Foods,” the lawsuit continues. “Essentially, because Snoop Dogg and Master P refused to sell Snoop Cereal in totality—Post entered a false arrangement where they could choke Broadus Foods out of the network—thereby preventing Snoop Cereal from being sold or produced by a competitor.”

The lawsuit also points to several issues in keeping Snoop Cereal in stock at Walmart after its launch in July 2023. “Many Walmart stores showed online and in the employee’s in-store app that Snoop Cereal was sold out or out of stock,” the lawsuit says. “However, upon further investigation by store employees, each of these stores had several boxes of Snoop Cereal in their stockrooms that were coded not to be put out in the store shelves.”

“Post essentially worked with Walmart to ensure that none of the boxes of Snoop Cereal would ever appear on store shelves,” the rappers continue in their complaint. “This automatically resulted in losses to the product which cut until the profits that Broadus Foods was supposed to receive.” They allege that Snoop Cereal was a strong seller while it was available, but Post conspired to keep it unavailable.

“Walmart has furthered this arrangement by taking on a few of the products but not providing a location for those products on their shelves,” the rappers continue. “This has permitted Post to profit from their own cereal brands while keeping a competitor from having their products on the shelves.”

Another issue was the price per box, which reached over $10 once it was finally on store shelves. Broadus Foods says the high price per box goes against the company’s mission of providing affordable food to families.

The lawsuit accuses Post of breach of the implied covenant of good faith and fair dealing, breach of fiduciary duty, breach of contract, fraud, negligent misrepresentation, and collusion and conspiracy. Walmart faces the collusion and conspiracy claim, with separate claims for aiding and abetting a breach of fiduciary duty and tortious interference with contract and business relations.