Watkins CEO Refutes McCormick's Response to "Slack Filling" Claim and Watkins Asserts Additional Facts Concerning McCormick's Unlawful "Slack Filling" its Containers of Black Peppercorn Grinders by 20%

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Jun 24, 2015, 04:54 ET

WINONA, Minn., June 24, 2015 /PRNewswire/ -- Watkins Incorporated announced today that it will add additional facts to its recently-filed June 9, 2015, lawsuit against McCormick & Co., Inc. ("McCormick"), which contends that McCormick illegally violates the federal "slack fill" prohibitions in reducing the contents in its ground black pepper tins by 25%. It has now been discovered that McCormick has also engaged in "slack fill" by reducing its largest selling 1.24 oz. "Black Peppercorn Grinders" by approximately 20% to 1.0 oz., and is continuing to use the same containers as well as charge the same price for the reduced 1 oz. peppercorn contents as it charged for 1.24 oz. size (see attached photo).

Exhibit A: Photo of the original 1.24 oz. McCormick black peppercorn grinder and the now 20% content reduced-size ("slack filled") 1 oz. McCormick black peppercorn grinder. These bottles were opened to confirm weight.

Exhibit B: Photo of the original 1.24 oz. McCormick black peppercorn grinder and the now 20% content reduced-size ("slack filled") 1 oz. McCormick black pepper grinder in sealed bottles. Only the facial label has been removed to show slack-fill.

Exhibit C: Photo of the original 1.24 oz. McCormick black peppercorn grinder with full label and the now 20% reduced-size ("slack filled") 1 oz. McCormick black peppercorn grinder with full label in sealed bottles upside down to show "slack fill".

McCormick is once again attempting to deceive and confuse retailers and their customers as it has with its black ground pepper tins, in attempting to make the Black Peppercorn Grinders look like their contents remain the same as the 1.24 oz. container prior to their reducing the bottles' contents to 1 oz., once again, McCormick is trying to camouflage its improper slack filling in its Black Peppercorn Grinders as it did in their ground black pepper tins.

In response to Watkins' lawsuit filed against McCormick & Co. on Tuesday, June 9, 2015, McCormick spokesperson Lori Robinson stated that McCormick believes the suit is not justified and that McCormick will defend itself "vigorously." While Robinson acknowledged that McCormick is now selling the same tins they've used for decades with 25% less black pepper in them, she further stated that McCormick "followed industry standard procedures."

Watkins' CEO Mark Jacobs said, "For McCormick to claim that it is 'following industry standard procedures' by selling the same tins it's been selling for decades with the ground black pepper in them and reducing the contents with 25% less product for no functional purpose other than to deceptively implement a price increase, is outrageous and absurd. I strongly believe it's not only unlawful but also a complete betrayal of retailers and their customers." Jacobs continues, "If McCormick is permitted to blatantly violate the slack fill regulations which are designed to protect the consumer and keep the competitive marketplace fair, what's next?...selling an 8 ounce container with 1 ounce in it and then telling the consumers they should read the labels more carefully?" Additionally Jacobs stated, "While I don't doubt McCormick's claim that it notified retailers in advance that it was changing bar codes and coming out with new substantially-reduced pepper contents in its tins, I don't believe that McCormick clearly communicated to their retailing and private label customers that it would be slack filling the exact same tins that have been in the marketplace for decades with 25% less pepper in them. Additionally, I don't believe any retailer would have allowed this to happen if it were given the full, true facts in advance. Retailers must trust us manufacturers to follow the packaging laws."

In January 2015, McCormick CEO Alan Wilson publicly stated that pepper costs had risen sharply over the past 5 years and that the company had little room to raise prices any further. Mr. Wilson further stated, "We feel like we're getting to a price where it's pretty stretched." Jacobs responded, "Based on Mr. Wilson's statement that he felt McCormick couldn't get a price increase by just simply doing the right and ethical thing by openly and clearly raising its pepper prices, rather it instead decided to substantially reduce the pepper tins' contents by 25% and essentially try to trick and deceive the consumers using the same tins it's used for decades that had 25% more pepper in them. To publicly state that charging the same price for a product with 25% less contents is not a price increase is the most arrogant and ridiculous thing I've ever heard. If McCormick wasn't trying to deceive the consumer, then why didn't they reduce the pepper tin sizes which would have actually saved them money in container costs?" asked Jacobs.

"While pepper costs have gone up considerably and have affected all of us in the spice business," continued Jacobs "that doesn't give McCormick the right to violate the slack fill legal requirements in order to deceive the retailers and their customers and allow McCormick to achieve millions of dollars in hidden profits by violating the law at the expense of the American consumer."

Exhibit A: Photo of the original 1.24 oz. McCormick black peppercorn grinder and the now 20% content reduced-size ("slack filled") 1 oz. McCormick black peppercorn grinder. These bottles were opened to confirm weight.

Exhibit B: Photo of the original 1.24 oz. McCormick black peppercorn grinder and the now 20% content reduced-size ("slack filled") 1 oz. McCormick black pepper grinder in sealed bottles. Only the facial label has been removed to show slack-fill.

Exhibit C: Photo of the original 1.24 oz. McCormick black peppercorn grinder with full label and the now 20% reduced-size ("slack filled") 1 oz. McCormick black peppercorn grinder with full label in sealed bottles upside down to show "slack fill".