Ex-North Brunswick Executive Stole Company's Secret Soda Recipe: FBI

NORTH BRUNSWICK, NJ – The former vice president of a New Jersey company admitted to stealing the company's secret recipe for a soda, U.S. Attorney Philip R. Sellinger said Wednesday.

Andrew Blum, 63, of North Brunswick, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court on Tuesday to an information charging him of conspiracy to possess stolen trade secrets and possession of stolen trade secrets.

“Blum admits he stole his employer's trade secrets and hoped to use the information so he could get a job across the street,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “Protecting the proverbial keys to the castle is essential for companies to remain in business and stay competitive. It’s even common for corporations to house formulas and recipes in literal vaults to keep them from being stolen. One of the FBI’s priorities is protecting companies from these types of crimes and holding accountable anyone who tries to sneak out the back door.”

According to court documents, Blum was the vice president of product development for a NJ company. The company’s parent corporation was one of the world’s largest manufacturers of proprietary flavors sold to the world’s largest beverage companies.

In December 2018, the company’s information technology team discovered that another employee used a personal email to forward 82 files containing trade secrets to Blum’s personal email, according to court documents.

The list of 82 files included all of the formulas used in the department where Blum worked.

The company later learned that Blum and the other employee accessed sensitive formulas that they were not working on, including a secret formula used in one of the most recognizable names in the global soft drink industry, Sellinger said.

According to authorities, Blum and the other employee were planning to leave the company to work for competitor companies.

Law enforcement later found other trade secret information from Blum’s house and from Blum’s cloud-based storage accounts, including handwritten notes for a product that the company produces that is sold by one of the world’s largest soda companies in a country in Asia, Sellinger said.

“A company’s intellectual property – its proprietary materials and trade secrets – have enormous value to the companies that develop them, sometimes constituting their most valuable assets. Stealing them is a crime. This defendant admitted stealing trade secrets, including a secret formula used in one of the most recognizable names in the global soft drink industry. Our office will prosecute cases like this with the same vigor as any other theft,” Sellinger said.

The counts of conspiracy to possess stolen trade secrets and possession of stolen trade secrets each carry a maximum potential penalty of 10 years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.

Blum’s sentencing is scheduled for March 20, 2025.

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