Fresno County farming company sues Sun-Maid Growers for not buying its golden raisins
A longtime Sun-Maid grower has filed a lawsuit against the raisin giant, alleging it broke its promise to buy the farmers’ popular golden raisins.
Melkonian Enterprises of Sanger, and its affiliated company Lone Star Dehydrator, claim in a lawsuit filed in Fresno County Superior Court that Sun-Maid’s refusal to buy its golden raisins has cost it millions of dollars.
The company is suing for breach of contract, negligent misrepresentation, and unfair business practices, among other things.
Sun-Maid officials issued a statement Friday about the lawsuit.
“We believe the claims asserted against us are without merit and we intend to vigorously defend this case. We expect that the full facts will come out in court, and we will continue to faithfully represent the interests of the approximately 750 family farm grower members that comprise the Sun-Maid cooperative—just as we have for over 100 years.”
Warren Paboojian, the Melkonian’s co-counsel, said for several decades his clients have grown Thompson seedless grapes, dehydrating them at Lone Star and then delivering them to Sun-Maid to sell to consumers. Also representing the company is the law firm Whitney, Thompson & Jeffcoach.
Golden raisins have increased in popularity these days and get their yellow color from an application of sulfur dioxide.
Paboojian said the Melkonians made Sun-Maid officials aware more than 10 years ago that they were transitioning about 120 acres of its vineyards to a higher-yielding and more profitable grape than the Thompson seedless - the standard for making regular raisins and golden raisins.
The lawsuit alleges, however, Sun-Maid talked the Melkonians out of planting a new grape and instead got them to plant 120 acres of Thompson seedless grapes. Sun-Maid officials also urged them to invest in the installation of additional dehydrating equipment to keep up with the growing demand for golden raisins, according to the lawsuit.
Sun-Maid honored the agreement through 2018 and then on June 6 ended it, according to the lawsuit. The company announced it would be using vendors to process and dehydrate the raisins, instead of using companies like Lone Star.
“The Melkonians never gave their raisins to anyone else in 40 years,” Paboojian said. “They were loyal cooperative members and now Sun-Maid has put them in a dire financial position.”
Paboojian said the company used to provide about 1,200 tons of golden raisins to Sun-Maid. Now, it is struggling to figure out what to do.
“(Melkonian Enterprises) were required to lay off a substantial number of their staff and laborers, lost business from dehydrating contracts it otherwise would have received and was left without a place to deliver its golden raisins crop for the 2019 growing year,” according to the lawsuit.
The lawsuit seeks damages, including for lost profits and punitive damages.
This story was originally published December 16, 2019 at 5:00 AM.
