Aroma Espresso Bar Sues Supplier for $3.8 Million Over Faulty Baking Ingredients

Aroma Espresso Bar, a prominent Israeli coffee and pastry chain, has filed a lawsuit seeking 3.8 million shekels (approximately $1 million USD) in damages from its raw materials supplier, Sharon-Foratus. The lawsuit, lodged with the Jerusalem District Court, alleges that Sharon-Foratus, part of the Belgian conglomerate Puratos, supplied defective ingredients that caused a "foul" odor in three of Aroma's flagship products: chocolate croissants, butter croissants, and cinnamon Danish.

The dispute centers on baking improvers named "Kimo" and "Aroma Croissant," designed to maintain pastry quality after freezing. According to Aroma's claim, Sharon-Foratus notified them in May 2023 of an "undesirable reaction" when the ingredients were combined with dairy doughs and recommended immediate discontinuation of use. This led Aroma to halt distribution of the affected products and, in some cases, destroy entire batches of pastries produced between May 11 and May 24, 2023, as separating affected from unaffected items proved difficult.

Aroma alleges that Sharon-Foratus admitted to making changes in the baking improvers' components but failed to inform Aroma in real-time or conduct adequate quality control. The lawsuit further claims that a replacement ingredient offered by the supplier was also found to be defective, necessitating further destruction of goods. This resulted in widespread complaints from branches about bad smells emanating from dough before baking and significant shortages in display cases, directly impacting sales.

The chain is seeking compensation for the estimated value of the destroyed products, totaling 2.95 million shekels. An additional 161,000 shekels is claimed for undelivered goods to franchisees due to the sudden marketing halt, and 24,000 shekels for the costs associated with transporting and destroying the faulty merchandise. Aroma also asserts claims for significant lost revenue, diminished expected profits from its signature pastries, and severe damage to its reputation and customer trust. Sharon-Foratus has not yet filed a defense or responded to the allegations.