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Monopoly Sweeteners

Two of the largest sugar refiners in the southeast United States are seeking a merger but the U.S. Justice Department is objecting. The Department says that would leave just two refiners in the region controlling "an overwhelming majority of refined sugar sales." The refiners complain that the Justice Department doesn’t understand how sugar refining works. The refiners may be correct because if antitrust lawyers understood how the U.S. sugar program works, they would classify the entire minimum marketing price to be harmful to consumers.  U.S. consumers pay more for sugar than in other major producing countries, including in France and Germany. Despite higher prices per capita consumption continues to rise. Since sugar is consid...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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