Bakery giant Canada Bread Co. has been fined $50 million after pleading guilty to its role in a criminal price-fixing scheme that inflated the price of bread in Canada for years.
It91裸聊视频檚 the highest price-fixing fine ever imposed by a Canadian court, the Competition Bureau of Canada said Wednesday.
The settlement is a significant milestone in the competition watchdog91裸聊视频檚 ongoing investigation into alleged bread price-fixing in Canada.
It comes as record food prices fuel consumer discontent with Canada91裸聊视频檚 food industry and fan distrust of grocers.
It also shines a spotlight on the Competition Bureau91裸聊视频檚 ongoing investigation into the role of other companies, including Metro, Sobeys, Walmart Canada, Giant Tiger, and Maple Leaf Foods.
91裸聊视频淔ixing the price of bread 91裸聊视频� a food staple of Canadian households 91裸聊视频� was a serious criminal offence,91裸聊视频� Matthew Boswell, Commissioner of Competition, said in a statement.
91裸聊视频淥ur continuing investigation remains a top priority,91裸聊视频� he said. 91裸聊视频淲e are doing everything in our power to pursue those who engage in price-fixing.91裸聊视频�
Canada Bread, now a subsidiary of Mexico-based Grupo Bimbo, pleaded guilty to four counts of price-fixing under the Competition Act.
The bread maker admitted that it arranged with its competitor, Weston Foods (Canada) Inc., to increase prices for various bagged and sliced bread products, such as sandwich bread, rolls and hotdog buns, the Competition Bureau said.
The price-fixing scheme resulted in two price increases, one in 2007 and another in 2011, it said.
At the time of the price-fixing arrangement, Canada Bread was under the ownership of Maple Leaf Foods.
Grupo Bimbo said it91裸聊视频檚 considering 91裸聊视频渁ll legal options against those responsible.91裸聊视频�
Maple Leaf Foods did not immediately respond to a request for comment.
91裸聊视频淯nder new ownership, Canada Bread is committed to being a responsible partner to our valued customers and making bread an accessible and reliable food source for Canadians,91裸聊视频� Canada Bread vice-president Alice Lee said in a statement.
91裸聊视频淲e are pleased to have resolved this matter, and we look forward to building upon our investments in Canada.91裸聊视频�
Food industry expert Sylvain Charlebois pointed out that it took an international company to step up and acknowledge the wrongdoing in Canada91裸聊视频檚 food industry.
91裸聊视频淭he paradox in all of this is we needed a Mexican company to clean the Canadian food industry up,91裸聊视频� said Charlebois, a professor of food distribution and policy at Dalhousie University. 91裸聊视频淣obody in Canada wants to admit guilt.91裸聊视频�
He added: 91裸聊视频淭he investigation is not over. More questions are going to be asked and Canadians will want more answers.91裸聊视频�
The Competition Bureau began investigating alleged anti-competitive agreements between competitors to fix either the price of fresh commercial bread in January 2016.
The investigation became public in 2017 when the first search warrants were executed.
Weston Foods and Loblaw Cos. Ltd., both subsidiaries of George Weston Ltd. at the time, had previously admitted their participation in an 91裸聊视频渋ndustry-wide price-fixing arrangement91裸聊视频� involving the co-ordination of retail and wholesale bread prices.
In exchange for their co-operation, the companies received immunity from prosecution.
The Competition Bureau alleged in court documents in 2018 that at least $1.50 was artificially baked into the price of a loaf of bread during the 16-year bread-price-fixing conspiracy involving the country91裸聊视频檚 largest bakery wholesalers and grocery retailers.
Experts say the scandal has given Canadians good reason to be skeptical about the cause of high food prices in recent months, especially as grocers post significant profits.
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