Canada Bread Company was fined $50 million by the Ontario Superior Court of Justice after pleading guilty for a criminal price fixing arrangement which raised bread prices. .“Fixing the price of bread — a food staple of Canadian households — was a serious criminal offence,” said Competition Bureau Canada Commissioner Matthew Boswell in a Wednesday press release. .“Our continuing investigation remains a top priority.”.The release said the fine is the highest for price fixing imposed by a Canadian court to date. .Canada Bread pleaded guilty to four counts of price fixing under the Competition Act. It admitted it arranged with its competitor Weston Foods Canada to increase prices for various bagged and sliced bread products, such as sandwich bread, hot dog buns, and rolls. .This price fixing resulted in price increases in 2007 and 2011. .At the time of the price fixing, Canada Bread was under the ownership of Maple Leaf Foods. The senior leadership responsible for it is no longer with the company. .The release went on to say the Competition Bureau recommended to the Public Prosecution Service of Canada that Canada Bread receive leniency in return for its full cooperation with the investigation. It said this fine represents the maximum applicable under the law, less a leniency discount for its guilty plea and cooperation. .The guilty plea is the result of the bureau’s ongoing investigation into alleged price fixing between producers to raise wholesale bread prices and between grocery stores to raise retail prices. .The release called the record fine for Canada Bread a significant milestone in its ongoing investigation. It continues to investigate alleged price fixing by other companies, including Metro, Sobeys, Walmart Canada Corporation, Giant Tiger Stores, and Maple Leaf Foods. .“We are doing everything in our power to pursue those who engage in price fixing,” said Boswell. .Canada Bread responded to the outcome by saying it was acquired by Grupo Bimbo in 2014. ."It is crucial to highlight that Grupo Bimbo was not aware of, nor did due diligence uncover, the conduct prior to its acquisition of the Company," it said. ."It was only in 2017 that Canada Bread’s parent company learned about the conduct." .Since then, it said it has provided full, consistent cooperation with the bureau. .It is considering all legal options against those responsible for the conduct at issue. .Canada Bread remains committed to delivering high quality products and maintaining the trust of its customers. It takes great pride in knowing its products are made for Canadians, by Canadians. .Seven large Canadian retailers were named as defendants in a class action lawsuit into an alleged $5 billion bread price fixing scheme in 2022. .READ MORE: Anyway you slice it, alleged bread price-fixing scheme stacks up to billion$.“The conspiracy at issue in this proposed class action is alleged to have gone for some 16 years,” said Ontario Superior Court Justice Edward Morgan. .The defendants in the lawsuit are Walmart Canada, Loblaw, Canada Bread, George Weston, Giant Tiger Stores, Metro, and Sobeys.
Canada Bread Company was fined $50 million by the Ontario Superior Court of Justice after pleading guilty for a criminal price fixing arrangement which raised bread prices. .“Fixing the price of bread — a food staple of Canadian households — was a serious criminal offence,” said Competition Bureau Canada Commissioner Matthew Boswell in a Wednesday press release. .“Our continuing investigation remains a top priority.”.The release said the fine is the highest for price fixing imposed by a Canadian court to date. .Canada Bread pleaded guilty to four counts of price fixing under the Competition Act. It admitted it arranged with its competitor Weston Foods Canada to increase prices for various bagged and sliced bread products, such as sandwich bread, hot dog buns, and rolls. .This price fixing resulted in price increases in 2007 and 2011. .At the time of the price fixing, Canada Bread was under the ownership of Maple Leaf Foods. The senior leadership responsible for it is no longer with the company. .The release went on to say the Competition Bureau recommended to the Public Prosecution Service of Canada that Canada Bread receive leniency in return for its full cooperation with the investigation. It said this fine represents the maximum applicable under the law, less a leniency discount for its guilty plea and cooperation. .The guilty plea is the result of the bureau’s ongoing investigation into alleged price fixing between producers to raise wholesale bread prices and between grocery stores to raise retail prices. .The release called the record fine for Canada Bread a significant milestone in its ongoing investigation. It continues to investigate alleged price fixing by other companies, including Metro, Sobeys, Walmart Canada Corporation, Giant Tiger Stores, and Maple Leaf Foods. .“We are doing everything in our power to pursue those who engage in price fixing,” said Boswell. .Canada Bread responded to the outcome by saying it was acquired by Grupo Bimbo in 2014. ."It is crucial to highlight that Grupo Bimbo was not aware of, nor did due diligence uncover, the conduct prior to its acquisition of the Company," it said. ."It was only in 2017 that Canada Bread’s parent company learned about the conduct." .Since then, it said it has provided full, consistent cooperation with the bureau. .It is considering all legal options against those responsible for the conduct at issue. .Canada Bread remains committed to delivering high quality products and maintaining the trust of its customers. It takes great pride in knowing its products are made for Canadians, by Canadians. .Seven large Canadian retailers were named as defendants in a class action lawsuit into an alleged $5 billion bread price fixing scheme in 2022. .READ MORE: Anyway you slice it, alleged bread price-fixing scheme stacks up to billion$.“The conspiracy at issue in this proposed class action is alleged to have gone for some 16 years,” said Ontario Superior Court Justice Edward Morgan. .The defendants in the lawsuit are Walmart Canada, Loblaw, Canada Bread, George Weston, Giant Tiger Stores, Metro, and Sobeys.
