Makers of sugar substitutes Splenda, Equal settle suit
Published 9:00 pm Friday, May 11, 2007
PHILADELPHIA – The makers of Splenda and Equal on Friday settled a lawsuit over Splenda’s disputed advertising slogan – “Made from sugar so it tastes like sugar.”
The settlement came after the jury announced that it had reached a verdict.
Merisant Co., which makes Equal, accused Splenda of confusing consumers into thinking its product was healthier and more natural than other artificial sweeteners. Splenda’s marketer, McNeil Nutritionals, countered that it simply has a better product backed by superior advertising.
A McNeil spokeswoman in the courtroom said the amount of the settlement wouldn’t be announced. The two sides planned to issue a joint statement later Friday.
Chicago-based Merisant was seeking more than $200 million from McNeil – at least $183 million for unfair profits since 2003 and compensation for at least $25 million in lost sales.
The active ingredient in Splenda starts as pure cane sugar but is chemically altered to create a compound that contains no calories, according to McNeil. The final product contains no sugar.
The one-month trial focused mostly on Splenda’s advertising slogan, but it ended in a settlement after the jury said it had reached a verdict Friday afternoon.
