AUSTIN, Minn., Nov. 5 /PRNewswire/ -- Hormel Foods Corporation
(NYSE: HRL), Austin, Minn.-based meat and food processor, announced today it
has filed a lawsuit against Bioenergy, Inc., Minneapolis, Minn.
The company's lawsuit alleges breach of contract and interference with
contractual relations, among other issues. This action arises from an
agreement involving Bioenergy's dietary supplement ribose product. The
lawsuit, filed in State District Court in Mower County on Friday, Nov. 5,
seeks more than $2.8 million in damages from Bioenergy.
Under terms of the agreement, which had been established May 1, 1998,
Hormel Foods served as the exclusive representative for marketing, sales and
distribution of ribose in the United States and Canada. Hormel Foods had
invested a substantial amount of time, money and effort in marketing and
development, sales contacts and soliciting orders for this product.
The termination of the agreement between the parties is effective Nov. 10,
1999. No other details about the lawsuit are available.
"We are obviously very disappointed this arrangement did not work out and
that we have to pursue through legal action damages incurred by our company,"
said V. Allan Krejci, vice president of public relations for Hormel Foods.
SOURCE Hormel Foods