Fastexy Exchange|Snoop Dogg sues Walmart and Post, claiming they sabotaged cereal brands

Walmart and Fastexy ExchangePost Consumer Brands undermined cereal brands created by Snoop Dogg and Master P by making them unaffordable and by keeping them hidden in stockrooms, a lawsuit filed by the rappers claims. 

Post agreed to make and distribute Snoop Cereal and Momma Snoop under phony pretenses after the rappers rejected the retail giant's offer to buy their company outright, according to the suit filed Tuesday by Broadus Foods. The cereal brand was founded by Calvin Broadus, otherwise known as Snoop Dogg, and No Limit Records founder Percy Miller, known as Master P, to pass on to their children, it states. 

After entering a profit-sharing agreement that had Post making and distributing the cereals, the pair found "Post was not on board with their goals and dreams and had no intention of treating Snoop Cereal equally as its own brands," the rappers stated in their complaint, filed in Minnesota's Dakota Country District Court where Post is headquartered. 

"Post ensured that Snoop Cereal would not be available to consumers or that it would incur exorbitant costs that would eliminate any profit to Broadus Foods," according to the complaint. 

Launched in Walmart stores in July 2023, the cereal disappeared from many stores within months, according to the duo.   

"Many Walmart stores showed online and in the Walmart employee's in-store application that Snoop Cereal was sold out or out of stock," states the complaint. "However, upon further investigation by store employees, each of these stores had several boxes of Snoop Cereal in their stockrooms that were coded to not be put out on the store shelves."

The decision to price the cereal at more than $10 a box also conflicted with the goal of Broadus Foods to offer affordable food, claimed the rappers, who are represented by Los Angeles attorney Ben Crump.

"Snoop Dog and Master P founded Broadus Foods with the vision of creating a family-owned company that promotes diversity in the food industry and provides opportunities for minority-owned products," Crump said Tuesday in a statement. "Broadus Foods aimed to inspire economic empowerment among minorities and contribute to charitable causes addressing hunger and homelessness."

Post "allegedly sabotaged the success of Snoop Cereal by preventing it from reaching consumers through deceptive practices, Crump added.

The packaged goods conglomerate responded with a statement that said it had been "excited" about its partnership with Broadus and made "substantial investments" in the business. 

"We were equally disappointed that consumer demand did not meet expectations," the packaged goods company added.

"Walmart values our relationships with our suppliers, and we have a strong history of supporting entrepreneurs. Many factors affect the sales of any given product, including consumer demand, seasonality, and price to name a few. We will respond as appropriate with the Court once we are served with the complaint," the retailer stated. 

Kate Gibson

Kate Gibson is a reporter for CBS MoneyWatch in New York.