Court Says Arizona Firm May Sell Milk in California

August 11, 1999

A California appellate court has ruled Shamrock Foods of Phoenix, AZ, may sell its milk in California. The decision reverses a San Diego Superior Court ruling that said Shamrock violated state law with the sales.

California has its own unique milk standards, but the appellate court found that a 1994 amendment to the state code permitted the sale of milk meeting federal composition standards as long as the milk was labeled according to federal law. The dispute was over the meaning of the amendment. The appellate court agreed with Shamrock's interpretation and reversed a court-ordered civil penalty of nearly $700,000.

"We feel vindicated that the court has upheld our right to sell our...milk products in California," said Ann Puelz Ocana of Shamrock Foods. "We are pleased that the court's understanding of the law is the same as ours." Shamrock also says the ruling opens the California market to more competition and consumer choice. "More competition will lower the cost of milk," said Puelz Ocana.