Kraft Foods Group Inc. and its former snacks division, now known as Mondelez Global LLC, have been charged with manipulating wheat and wheat futures prices and making $5.4 million as a result.
According to multiple news sources, the U.S. Commodity Futures Trading Commission (CFTC) brought the charges against the companies, citing emails between Kraft’s then-CFO and a former procurement director as evidence. The executives allegedly began manipulating the price of wheat in late 2011, at a time when dry weather conditions were causing prices to rise.
Wheat is an important ingredient in many snacks, including cookies and crackers.
The Illinois-based Kraft, parent of Oscar Mayer in Madison, said Mondelez will assume any penalties that may arise from the CFTC suit. Mondelez split from Kraft in 2012.
Kraft reported a $398 million net loss for the fourth quarter of 2014. Around the same time, several of the company’s top executives departed, including Oscar Mayer President Sam Rovit, who stepped down.
