💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Yogurt wars escalate as Dannon sues executive who jumped to Chobani

Published 02/21/2018, 03:37 PM
Updated 02/21/2018, 03:40 PM
© Reuters. Containers of Danone's Dannon Yogurt are displayed in a supermarket in New York
DANO
-
KR
-

By Jonathan Stempel

NEW YORK (Reuters) - Dannon Co on Wednesday sued a former high-level sales executive, accusing him of stealing confidential details about the company's strategies and salary data for its employees before jumping to yogurt-making rival Chobani LLC.

According to a complaint filed in federal court in White Plains, New York, Federico Muyshondt stole trade secrets and other proprietary information, including "roadmaps of Dannon's sales strategies for yogurt sales," in the five months before his Jan. 16 resignation.

Muyshondt, of Mount Kisco, New York, had been a senior vice president handling sales in the eastern United States and to supermarket chain Kroger Co (N:KR) and resigned four days after receiving a "substantial six-figure bonus," Dannon said.

Muyshondt could not immediately be reached.

Chobani, based in Norwich, New York, is not a defendant. It did not immediately respond to requests for comment.

The lawsuit comes as Dannon, a White Plains-based unit of France's Danone SA (PA:DANO), tries to recapture sales from Chobani, whose Greek yogurt has made it the top-selling brand in a shrinking $8.8 billion U.S. yogurt market.

The lawsuit seeks unspecified damages and an injunction against using stolen materials.

Dannon alleged that Muyshondt began preparing for a possible move in August, after attending a seminar featuring Chobani's chief operating officer.

Dannon said he later forwarded details about the company's business plans to a personal email account, downloaded thousands of files, and swapped a SIM card that may have contained contact information for colleagues and customers out of a company-issued iPhone.

Dannon said the stolen information included non-compete agreements for some employees and email addresses for all Dannon employees connected with sales teams Muyshondt oversaw.

"It is inevitable that he will disclose the misappropriated information to Chobani, his new employer," Dannon said.

"It would be virtually impossible for Muyshondt to occupy a high-level sales position at a direct competitor of Dannon without relying on the confidential and proprietary information he gained while employed in the same capacity by Dannon," it added.

© Reuters. Containers of Danone's Dannon Yogurt are displayed in a supermarket in New York

The case is Dannon Co v Muyshondt, U.S. District Court, Southern District of New York, No. 18-01567.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.