Carlstadt cheese importer seeks $5M

July 03--For nearly 30 years, Fantis Foods Inc. of Carlstadt imported and sold Dodoni feta cheese, the exclusive vendor and main promoter of the Greek brand in the U.S.

Yet in the past four years, the company's relationship with the Athens-based manufacturer, Dodoni S.A.-Agricultural Dairy Industry of Epirus, has soured, to the point where the two are now locked in a court battle.

Fantis Foods, in a lawsuit filed last week in U.S. District Court in Newark, accuses its longtime Greek partner of fraud and breach of contract and seeks $5 million in damages.

The lawsuit accuses Dodoni of reneging on a 2010 promise that Fantis Foods would remain the exclusive importer and distributor of the cheese for 10 years and claims that in 2014 Dodoni -- led by new management -- made Arthur Schuman Inc. of Fairfield the "exclusive importer and distributor" of the cheese.

Fantis Foods now is trying to "mitigate its damages" by ordering cheese from Schuman, which charges a higher price than the Carlstadt company previously paid, the lawsuit says.

"Plaintiff has suffered and will continue to suffer loss of business," as a result of Dodoni's behavior, the lawsuit says.

Fantis Foods, founded about 100 years ago, sells cheese, olive oil, wine and a variety of other Greek products through its corporate office in Carlstadt and offices in Illinois, Florida and California. The company is owned by the Makris family of Alpine, which also owns the Thalassa Restaurant in New York's trendy Tribeca.

Dodoni was founded in 1963 and had revenue of 83 million euros, or about $115 million in 2012, the company's website says. The site calls Dodoni the "leading Greek producer and exporter of cheese products."

Fantis Foods began importing and distributing Dodoni cheese in 1984, and invested "significant time and money" in promoting the cheese, assured that it had exclusive importation rights, the lawsuit says. By 2013, the cheese "represented a significant portion" of Fantis Foods' annual revenue, the lawsuit says.

But in 2013, a new management team took over Dodoni. And in March of this year, the new team came to Carlstadt and informed Fantis Foods that it would no longer be the exclusive vendor in the U.S, the lawsuit alleges.

The lawsuit claims that at various times its Greek partner sent cheese that had the manufacturing dates altered, and sometimes sent cheese in improperly sealed containers.

The lawsuit alleges that although Fantis Foods for years had paid Dodoni to buy insurance to cover damage or theft of the cheese while it was being shipped, the Greek company never bought the insurance. As a result, more than $100,000 in damage over the years was not covered by insurance, the lawsuit alleges.

"Defendant knew at the time its representations about insurance were false," the lawsuit claims.

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