Kroger, HIKC Kona coffee farmers $14.3M class action settlement

Kroger and HIKC agreed to pay a combined $14.3 million settlement to resolve claims they violated trademark law by marketing coffee as originating in the Kona region.

The settlement benefits Kona coffee farmers who farmed and sold their coffee between Feb. 27, 2015, and Feb. 14, 2022.

Kona coffee is world renowned as some of the best coffee in the world due to its rich flavor. Kona beans are harvested in a 1-mile-by-30-mile stretch of land (the Kona Coffee Belt) between two volcanoes in Hawaii. 

Consumers regularly pay a higher price for Kona coffee beans due to the prestige of the harvest. However, some grocery stores may have tried to pass their own beans off as Kona coffee beans.

Companies such as Kroger, HIKC, Costco, Amazon, World Market, Walmart and Safeway were hit with a class action lawsuit from Kona coffee farmers alleging the retailers were selling fraudulent Kona coffee beans. According to the farmers, the companies used the reputation of Kona coffee beans to sell their “ordinary commodity coffee” as Kona coffee — allowing them to charge a higher price for their beans.

Kona coffee farmers claim they were harmed by this conduct in a couple of ways.

First, the influx of counterfeit Kona coffee beans allegedly damages the reputation of the region when consumers are misled into thinking Kona coffee beans are “nothing special.” 

Second, when retailers sell their counterfeit beans, actual Kona coffee farmers are forced to sell their beans at a lower price in order to compensate for the excessive supply.

The farmers brought claims under the Lanham Act, also known as the Trademark Act.

Kroger and HIKC haven’t admitted any wrongdoing but agreed to pay a combined $14.3 million to resolve these allegations. Kroger will contribute $13.5 million to the fund, and HIKC will contribute $800,000. Costco, TJX and other involved companies previously agreed to settlements worth over $13.1 million to resolve similar allegations.

Under the terms of the HIKC and Kroger settlement, class members can collect a cash payment based on the amount of genuine Kona beans they sold. Class members with a higher sale volume will receive a larger share of the net settlement fund. Exact payments will vary. 

In addition to providing cash payments, the settlement offers non-monetary relief. Specifically, the defendants agreed to modify the labels of coffee products to correctly indicate their origin. The companies will also create labeling requirements for Safeway/Albertsons’ vendors of such products.

The deadline for exclusion and objection passed on May 2, 2022. 

The final approval hearing for the HIKC and Kroger settlement was scheduled for June 3, 2022. 

In order to receive payment from the HIKC and Kroger Kona coffee settlement, class members must submit a valid claim form by Sept. 17, 2022. Class members who submitted claims for previous settlements do not have to submit a claim.

Who’s Eligible

Kona coffee farmers who farmed and sold their coffee between 02/27/2015 – 02/14/2022

Potential Award

Varies

Proof of Purchase

Proof of purchase not applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

09/17/2022

Case Name

Corker, et al. v. Costco Wholesale Corp., et al., Case No. 1:19-cv-00290, in the District Court for the Western District of Washington

Final Hearing

06/03/2022

Settlement Website

KonaCoffeeSettlement.com

Claims Administrator

Kona Coffee Farmers Settlement Administrator
c/o JND Legal Administration
PO Box 91232
Seattle, WA 98111
info@KonaCoffeeSettlement.com
833-667-1227

Class Counsel

Nathan T Paine
KARR TUTTLE CAMPBELL

Jason L Lichtman
Daniel E Seltz
Andrew R Kaufman
LIEFF CABRASER HEIMANN & BERNSTEIN LLP

Defense Counsel

Christine Wheatley
General Counsel
THE KROGER CO.

HAWAIIAN ISLES KONA COFFEE LTD LLC