Canada Bread Co. has been fined $50 million after the bakery company pled guilty to a price-fixing scheme that artificially raised the price of bread in this country.
The $50 million is the highest price-fixing fine ever imposed by a Canadian court, according to the federal Competition Bureau.
The fine comes as record food prices fuel Canadians’ distrust of grocery stores and their executive management teams, especially as grocers post record profits.
The Competition Bureau is currently investigating companies such as Metro (MRU), Sobeys, Walmart Canada (WMT), Giant Tiger, and Maple Leaf Foods (MFI).
Canada Bread, now a subsidiary of Mexico-based Grupo Bimbo (GRBMF), pled guilty to four counts of price-fixing under the Competition Act.
The bread maker admitted that it arranged with its competitor, Weston Foods, to increase prices for various bagged and sliced bread products.
The price-fixing scheme resulted in price increases that occurred in 2007 and 2011.
At the time the price-fixing took place, Canada Bread was owned by Maple Leaf Foods.
In a statement, Maple Leaf Foods said it is not aware of any wrongdoing by Canada Bread or its senior leadership during the time that Maple Leaf was a shareholder.
Weston Foods and Loblaw Cos. both admitted their participation in the price-fixing scheme that involved the co-ordination of retail and wholesale bread prices. In exchange for their co-operation, each company received immunity from prosecution.
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