Holk v. Snapple Beverage Corp., Civil Action No. 07-3018 (MLC).
| Decision Date | 13 June 2008 |
| Docket Number | Civil Action No. 07-3018 (MLC). |
| Citation | 574 F.Supp.2d 447 |
| Parties | Stacy HOLK, Plaintiff, v. SNAPPLE BEVERAGE CORPORATION, Defendant. |
| Court | U.S. District Court — District of New Jersey |
Tortoreti, Tomes & Callahan, PC, East Brunswick, NJ (Philip A. Tortoreti, of counsel), Wilentz, Goldman & Spitzer, PC, Woodbridge, NJ (Lynne M. Kizis, Daniel R. Lapinski, of counsel), Tunney & Halbfish, (Michael D. Halbfish, of counsel), for Plaintiff.
Baker Botts, L.L.P., New York City (Richard B. Harper, Maureen P. Reid, Van H. Beckwith, Allyson N. Ho, of counsel), for Defendant.
Plaintiff, Stacy Holk ("Plaintiff"), commenced this action on behalf of herself and all others similarly situated against Snapple Beverage Corporation ("Snapple"). Plaintiff alleges, inter alia, that Snapple (1) violated the New Jersey Consumer Fraud Act, N.J.S.A. § 56:8-1 et seq., (2) was unjustly enriched by its wrongful and deceptive conduct, and thus, should be required to disgorge its "illegally gotten gains", (3) breached certain of its express warranties, and (4) breached the implied warranty of merchantability. (Id.) Snapple moves to dismiss the amended complaint with prejudice, or, in the alternative, without prejudice pursuant to the primary jurisdiction doctrine. (Dkt. entry no. 26.) Plaintiff opposes the motion. (Dkt. entry no. 29.) For the reasons stated herein, the Court will grant the motion.
The Court, for the purpose of addressing this motion only, will accept as true the following factual allegations contained in the amended complaint. See Cal. Pub. Employees' Ret. Sys. v. Chubb Corp., 394 F.3d 126, 134 (3d Cir.2004).
Snapple manufactures and sells beverages throughout the United States. (Dkt. entry no. 25, Amend. Compl., at ¶ 19.) In its advertising and marketing materials, Snapple describes its iced tea and juice drinks as "All Natural". (Id. at ¶ 22.) Plaintiff asserts, however, that Snapple's iced tea and juice drinks are not "All Natural" because they contain High Fructose Corn Syrup ("HFCS"), a highly processed sugar substitute. (Id. at ¶¶ 23-24.) Specifically, HFCS is produced when:
[C]ornstarch is first treated with a purified enzyme, alpha-amylase, to produce shorter chains of sugars called polysaccharides .... The polysaccharides (short chains of sugar) are then broken down even further by adding a second enzyme called glucoamylase.... The addition of glucoamylase to the polysaccharides yields the simple sugar glucose. In lieu of using alpha-amylase or glucoamylase, acids may be used in the HFCS production process. A third enzyme, glucoisomerase, then converts glucose to a mixture of about 42 percent fructose and 50 to 52 percent glucose with some other sugars (or short polymers of glucose) mixed in. While alpha[-]amylase and glucoamylase are added directly to the slurry, pricey glucose-isomerase is packed into columns and the sugar mixture is then passed over it. The sweet liquid with 42 percent fructose is used as HFCS 42 in some applications. To obtain a higher percentage of fructose in HFCS, two or more steps are necessary.
(Id. at ¶¶ 27-31.) Thus, Plaintiff argues that the molecules in HFCS do not originate from natural sources, but instead are created through "enzymatically catalyzed chemical reactions in factories". (Id. at ¶ 33.)
Plaintiff purchased two bottles of Snapple's Acai Blackberry Fruit Juice Drink on May 4, 2007. (Id. at ¶ 37.) She paid $1.09 per bottle. (Id.) Plaintiff asserts that she purchased other Snapple beverages "[a]t various other times over the course of the preceding six (6) years", and Snapple advertised and promoted its products as being "All Natural" at the time of each purchase. (Id. at ¶¶ 38-40.) Plaintiff contends that, inter alia, she suffered losses as a result of Snapple's misleading, inaccurate, and deceptive advertising "in that she paid a premium for Snapple's beverages but received something less than and different from what was promised and bargained for." (Id. at ¶ 44.)
The Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., ("FFDCA") gives the Federal Food and Drug Administration ("FDA") broad authority to regulate food and beverage labeling. There is no private right of action under the FFDCA. 12 U.S.C. § 337(a). Instead all proceedings to enforce or "restrain violations of the FFDCA must be commenced by the United States. Id. The FDA can enforce the FFDCA by, inter alia, recalling products that violate its provisions or seeking a judicial order enjoining such products. See 21 U.S.C. § 332; 21 C.F.R. § 7.40.
The FDA has promulgated comprehensive regulations pursuant to its authority under the FFDCA. 21 C.F.R. § 1.1 et seq.; see 21 U.S.C. § 341 (). With respect to beverages containing fruit or vegetable juice, these regulations require that:
[for] a carbonated or noncarbonated beverage that contains less than 100 percent and more than 0 percent fruit or vegetable juice, the common or usual name shall be a descriptive name ... and, if the common or usual name uses the word "juice," shall include a qualifying term such as "beverage," "cocktail," or "drink" appropriate to advise the consumer that the product is less than 100 percent juice (e.g., "diluted grape juice beverage" or "grape juice drink").
21 C.F.R. § 102.33(a). Further, if the product is a diluted multiple juice drink or a blend of single-strength juices, then the juices must be listed on the product label in descending order of prominence by volume, with certain exceptions. 21 C.F.R. § 102.33(b).
The FDA regulations contain detailed rules pertaining to (1) the common or usual name for diluted multiple-juice beverages or a product containing a blend of single-strength juices, (2) label depictions by "vignette or other pictorial representation" on products that have been either modified such that the original juice is not recognizable when processing is complete, or diminished of nutrients, and (3) naming juices made completely or partially from concentrate. 21 C.F.R. § 102.33(c)-(g). They also require all beverages purporting to contain fruit or vegetable juice, through their name, label, or a pictorial representation, to prominently declare, with certain exceptions, (1) the percentage of fruit or vegetable juice (e.g., "Contains ___ % ___ juice"), (2) if the beverage contains less than 1% of a particular juice, (3) if the beverage contains 100% juice with other added ingredients, preservatives, or sweeteners, and (4) if the beverage contains no or 0% juice when the labeling, color, or flavor of the beverage suggests that a fruit or vegetable might be present. 21 C.F.R. § 101.30(a)-(g). Thus, the FDA has promulgated extensive regulations governing various aspects of labeling beverages containing fruit juice.
The FDA defines "artificial flavor" as "any substance, the function of which is to impart flavor, which is not derived from a spice, fruit or fruit juice, vegetable or vegetable juice, edible yeast, herb, bark, bud, root, leaf or similar plant material, meat, fish, poultry, eggs, dairy products, or fermentation products thereof." 21 C.F.R. § 101.22(a)(1). In contrast, the FDA defines "natural flavor" as "the essential oil, oleoresin, essence or extractive, protein hydolysate, distillate, any product of roasting, heating or enzymolysis, which contains the flavoring constituents derived from" the above list. 21 C.F.R. § 101.22(a)(3). The FDA's current policy regarding the term "natural" is to (1) not restrict its use, except for added color, synthetic substances, and flavors, and (2) construe it as meaning that "nothing artificial or synthetic (including all color additives regardless of source) has been included in, or has been added to, a food that would not normally be expected to be in the food." 58 Fed.Reg. 2302, 2407 (Jan. 6, 1993). However, the FDA has also noted that there are many facets to the issue of how to properly define the term "natural", and thus, it has not "undertak[en] rulemaking to establish a definition for `natural'". Id. ()
The Court may dismiss a complaint for "failure to state a claim upon which relief can be granted." Fed.R.Civ.P. 12(b)(6). On a motion to dismiss, the Court generally must accept as true all of the factual allegations in the complaint, and must draw all reasonable inferences in favor of the plaintiff. Chubb Corp., 394 F.3d at 134; Doe v. Delie, 257 F.3d 309, 313 (3d Cir.2001). However, the Court need not credit bald assertions or legal conclusions alleged in the complaint. In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1429-30 (3d Cir.1997); Morse v. Lower Merion Sch. Dist., 132 F.3d 902, 906 (3d Cir.1997). The plaintiff's "[f]actual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact)". Bell Atl. Corp. v. Twombly, ___ U.S. ___, 127 S.Ct. 1955, 1965, 167 L.Ed.2d 929 (2007).
The Court, when considering a motion to dismiss, may generally not "consider matters extraneous to the pleadings." In re Burlington Coat Factory Sec. Litig., 114 F.3d at 1426. However, if the Court exercises discretion and permits a party to present matters outside the pleadings, the Court must (1) convert the ...
To continue reading
Request your trial
-
Llc v. the Coca Cola Co.
...characteristic juice, as Coca Cola does here. See 56 Fed. Reg. 30452; see 58 Fed. Reg. 2897; see Holk v. Snapple Beverage Corp., 574 F.Supp.2d 447, 454 (D. New Jersey 2008), cited with disapproval in Lockwood v. Conagra Foods, Inc., 597 F.Supp.2d 1028, 1034 (N.D.Cal.2009) ("the FDA under th......
-
Lockwood v. Conagra Foods, Inc.
...relies do not persuade the Court that Congress intended to preempt the field of food and beverage labeling. In Holk v. Snapple Beverage Corp., 574 F.Supp.2d 447 (D.N.J.2008), the district court considered the precise issue presented here. The plaintiff alleged that Snapple's use of the term......