Louisville, Kentucky-Tricon Global Restaurants Inc. said its U.S. Taco Bell restaurant franchisees would receive $60 million for lost business resulting from confusion over genetically modified corn in taco shells.
Tricon said that FRANMAC, an association representing the franchisees, and Tricon reached an agreement under which the suppliers of its taco shells would pay the $60 million to the franchisees. The payment will help the franchisees partially offset lost business.
Tricon has said that Taco Bell restaurants lost business amid customer concern after taco shells containing genetically modified StarLink corn were removed from store shelves. The shells, made by Kraft Foods Inc., were sold under the Taco Bell name. But those shells were not the same as those used at Taco Bell restaurants.
As part of their agreement, FRANMAC, Tricon and the taco shell suppliers will join together to seek damages from those responsible for the introduction of StarLink corn into the U.S. supply chain, the company said. -Reuters