Just days after announcing the acquisition of Epogee, the exclusive supplier of its key fat-replacement ingredient EPG, David — the rapidly growing brand behind the innovative David Protein Bar — has been hit with a federal antitrust lawsuit. The company is now under fire for allegedly cutting off EPG access to competitors that are using or could be eventually using EPG, with the plaintiffs saying the move disrupts their product development tied to the ingredient.
The lawsuit, filed on June 2nd, accuses David, Epogee, and co-founder Peter Rahal of orchestrating a secretive takeover and then monopolizing EPG by denying supply to other brands. The plaintiffs claim they invested heavily in EPG-driven formulas, only to be left without access after being “strung along” during the acquisition. With David now controlling what they call a “critical innovation”, brands impacted report layoffs, product cancellations, and operational halts.
David acquiring Epogee and controlling the lower-calorie fat is a major move and something we’ve had brands reach out about and comment on. It’ll be interesting to see how this ends, and it’s worth noting the list of plaintiffs includes some notable names in Lighten Up Foods, Defiant Foods, and OWN Your Hunger, the one responsible for the incredible Wonderspread. You can read about the lawsuit in much more detail over in a great piece from Ag Funder News.
