Dive Brief:
- 7-Eleven is suing a manufacturer and supplier of its 7-Select Iced Cappuccino bottled beverages for $1.6 million, according to a lawsuit filed with the U.S. District Court for the Northern District of Texas, Dallas Division, on March 4.
- The suit claims that Trilliant Food & Nutrition LLC owes 7-Eleven $1.6 million from products it produced and sold to wholesalers in early 2023. Trilliant is accused of withholding those funds, which 7-Eleven is calling a breach of contract, according to court documents.
- This comes about two months after 7-Eleven’s parent company, Seven & i, touted plans to bring more than 200 additional private label products to its stores in 2024.
Dive Insight:
The dispute between the two companies dates back to September 2022, when Trilliant’s CEO proposed ending their partnership after its October production run of the iced cappuccino beverages. At the time, Trilliant’s CEO was dissatisfied with how many of the drinks wholesalers had purchased in recent months. He also claimed that 7-Eleven was obligated to reimburse Trilliant for the costs of certain supplies it incurred while manufacturing the beverages, according to the complaint.
The following January, the companies agreed that Trilliant would manufacture “an additional volume” of these products to cover the period of 7-Eleven’s transition to a new long-term supplier. That agreement included, among other things, 7-Eleven pre-paying Trilliant for the beverage products, and being reimbursed within a week of wholesalers placing their purchase orders.
Trilliant owed 7-Eleven $1.6 million as of early February 2023, the lawsuit claims. At the time, the supplier said it would repay the funds within 30 days. However, by April, Trilliant said it was instead withholding these funds, once again for the expenses it incurred prior to the January agreement.
As of March 4, 2024, Trilliant has “failed, and refused, to issue any such refunds to 7-Eleven,” court documents state. The convenience retailer has called this a breach of contract and has demanded for a trial by jury to resolve the situation.
7-Eleven did not respond by press time to comment on the situation.
Trilliant’s latest quarrel with 7-Eleven is one of several lawsuits that the beverage manufacturer has faced in recent years. Since 2020, the company has been sued for not paying employees overtime wages and for labeling its products as organic without certification.
7 Eleven has grappled with several lawsuits over the past year. Those cases included paying out over $93 million in two different settlements, as well as its own lawsuit against an Illinois law firm for trademark infringement.
Little Chute, Wisconsin-based Trilliant manufactures coffee, powdered, ready-to-drink and wellness beverages.
Irving, Texas-based 7-Eleven operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada. It also operates and franchises Speedway, Stripes, Laredo Taco Company and Raise the Roost Chicken and Biscuits locations.
