Price Chopper Sues Giant Over Ads 2009-06-05

JESSICA ASSIMON

SCHENECTADY, N.Y. — Price Chopper Supermarkets is suing Binghamton Giant Food Markets for $20 million for allegedly stealing trade secrets.

According to a complaint filed in New York State Supreme Court here, a surveillance tape caught a former salesman for the beverage distribution company AL George LLC entering an "employees only" bottle supply closet at a Price Chopper in Binghamton, N.Y., and stealing ad fliers that were planned for distribution the following week. He then passed them on to his immediate superior in the store's parking lot, who in turn gave the fliers to August O. Kutchinski, director of operations for Giant Markets of Binghamton, the lawsuit alleges.

Neil Golub, president and chief executive officer of Price Chopper, told SN that during the six months that this allegedly occurred, he noticed his competition lowering its prices in the Sunday advertising sections or matching Price Chopper's prices.

Neither Giant of Binghamton nor AL George LLC could be reached for comment yesterday. Weis Markets, based in Sunbury, Pa., agreed to acquire Giant Markets of Binghamton last month.

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