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Antitrust Keyed to Morgan, 7th Ed.
Utah Pie Company v. Continental Baking Company
Citation:
386 U.S. 685, 87 S.Ct. 1326, 18 L.Ed.2d 406 (1967)Facts
Utah Pie entered the frozen pie market in Salt Lake City in 1957 and quickly gained 66.5% of the market by 1958. The three national defendants—Pet, Continental, and Carnation—each engaged in various forms of price discrimination in the Salt Lake City market. They sold frozen pies at lower prices in Salt Lake City than in other markets, despite higher freight costs. Some sales were made below cost. Pet arranged to sell private-label pies to Safeway at prices lower than its branded pies. Continental offered pies at $2.85 per dozen in June 1961, below cost and lower than in other markets, causing Utah Pie to reduce its price to $2.75. Carnation slashed prices by 60¢ per dozen in 1960 to a level below its costs. Despite these actions, Utah Pie’s sales volume continued to increase, though its market share declined from 66.5% in 1958 to 45.3% in 1961. The overall market was expanding rapidly, and the price structure deteriorated significantly over the period.
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