Zest Labs CEO On Fighting Walmart With $2 Billion Lawsuit
*By Amanda Weston*
The CEO of the Silicon Valley company suing Walmart for $2 billion for allegedly stealing its fresh-food technology said he's standing up for his team's creation and his investors.
Zest Labs chief Peter Mehring said the retail behemoth's Eden system is eerily similar to his firm's Zest Fresh technology.
"We have to stand up for the intellectual property we've created and the value that our investors invested in and our customers paid for," Mehring said in an interview Friday with Cheddar.
Zest Labs announced its lawsuit Wednesday after years of working with Walmart on a way to monitor fresh produce and optimize shipping to avoid waste. The companies began collaborating in 2015, but Walmart [reportedly lost interest](https://www.reuters.com/article/us-walmart-zestlabs-lawsuit/lawsuit-claims-walmart-stole-technology-to-keep-produce-fresh-idUSKBN1KM6D7) last November.
In March 2018, [Walmart said](https://blog.walmart.com/innovation/20180301/eden-the-tech-thats-bringing-fresher-groceries-to-you) its own associates created the original Eden system in just six months. The system serves as a "digital library of food standards," and created a "freshness algorithm that prioritizes the flow of perishable goods worldwide."
Zest Labs and its parent company, Ecoark Holdings, Inc., accuse Walmart of violating trade secret laws, breach of contract, and fraud.
"We taught them a lot during the three years that we worked with them, and a lot of the approach is new," said Mehring. "We take a proactive approach to avoiding food waste in the supply chain that's really a breakthrough for the industry, and no one else has come through with this, and then to see someone suddenly announce that they're doing something similar, after having worked with us for three years is what concerned us, and what really led to this claim that we filed."
Randy Hargrove, a Walmart spokesman, told [Reuters](https://www.reuters.com/article/us-walmart-zestlabs-lawsuit/lawsuit-claims-walmart-stole-technology-to-keep-produce-fresh-idUSKBN1KM6D7), “we respect the intellectual property rights of others" and said the company will respond to the allegations in the lawsuit in court.
Mehring said he has not heard from Walmart.
"We want to kind of move the industry," said Mehring. "Whatever moves that forward the fastest is really our goal. If settlement requires that, that's an open opportunity."
For more on this story, [click here](https://cheddar.com/videos/fresh-food-company-sues-walmart).
On this episode of Cheddar Innovates: WALDO CEO breaks down why now is a good time to make eyecare a priority, and how they are democratizing access to eyecare for all; COO at PetDx explains how next-generation sequencing technology is being used to detect cancer in pets early; Cheddar gets a look at Curiosity Stream's 'Inside The Mind of a Con Artist.'
Plans to add affordable housing to a development in Yellow Springs, Ohio, were squashed after comedian Dave Chappelle and other community members spoke out against the project. Chappelle threatened to pull the plug on his local comedy club and restaurant projects if the development had been approved.
Jason Moser, Senior Analyst at The Motley Fool, joined Wake Up With Cheddar to talk about the big takeaways from Disney's Q1 report, which showed the company nearing 130 million Disney+ subscribers as parks revenue ticks up.
Shares of Canadian cannabis giant Canopy Growth surged after the company reported Q3 earnings Wednesday morning, with shares up more than 15 percent at the close of the day's trading session. Despite net revenue declining year-over-year, Canopy beat analyst expectations and has ramped up efforts to develop a "THC ecosystem' in the U.S. Canopy Growth's CEO, David Klein, joined Cheddar News' Closing Bell to discuss the report. He noted that its brands Storz & Bickel vaporizers and BioSteel beverages showed record growth.
Florists are dreading weekend pickups for this year's Valentine's Day, which lands on a Monday. Christina Stembel, founder and CEO of Farmgirl Flowers joined Cheddar News to discuss the challenges presented by shortages caused by supply chain issues, lack of labor, and climate change and how her company is preparing for this year's holiday. “A Monday delivery is just really hard for small businesses like us," said Stembel. "Larger companies have the scale that some of the large transportation carriers will provide a Sunday pick up for Monday delivery, but for small companies like us, that's not an option. So we have to try to convince people to order early."
PLAY, a low-cost airline headquartered in Iceland, is expanding service to New York Stewart International Airport, marking its third destination in the United States. PLAY is the latest affordable carrier to fly onto the scene, debuting its first flights a little more than six months ago. Birgir Jonsson, CEO of PLAY, joined Cheddar to discuss what this expansion means for the airline and what it's been like to lead a new airline during a pandemic. "For us to get into the market now, have the availability of great, brand new aircraft at historically low prices, and basically being able to secure a low operating cost base for the future is a completely rare opportunity," Jonsson said. "We can get into the market now when our competitors are also weak."
The Winter Olympics showcase our favorite and most picturesque winter sports: from ski jumping, to figure skating, to ice hockey. But don't forget about doubles luge, the internet's favorite Olympic sport. Join us as we explore the history of this intimate display and reveal why doubles luge is so much more than a meme.
Jet Tila, Food Network star and author of '101 Thai Dishes You Need to Cook Before You Die,' joins Cheddar News to talk about his new cookbook that's helping people cook authentic Thai recipes.
