Canada Bread Resolves Competition Bureau Inquiry into Packaged Bread
TORONTO, June 21, 2023 /CNW/ - In a proceeding in the Ontario Superior Court in Toronto today, Canada Bread Company, Limited ("Canada Bread") resolved allegations made against it as part of an investigation by the Competition Bureau of Canada ("Competition Bureau") into packaged bread that began in 2016.
Canada Bread will pay a $50 million fine concerning two wholesale price increases implemented by Weston Foods (Canada) Inc. ("Weston") and Canada Bread more than a decade ago, when Canada Bread was majority owned and controlled by Maple Leaf Foods Inc. (Maple Leaf Foods).
As part of the Competition Bureau's investigation, in 2017 Weston and Loblaw Company Limited ("Loblaws") announced that they were granted immunity from prosecution in exchange for cooperation with the Competition Bureau.
According to court documents filed today:
- In 2007 and 2010-11, one or more senior executives at Weston made four pricing arrangements directly with the then-Chief Executive Officer of Canada Bread, who at the same time was also a senior officer of Maple Leaf Foods.
- These pricing arrangements resulted in the implementation of one price increase in 2007 and a second in 2011.
- During the period in question, Canada Bread was controlled by Maple Leaf Foods. A majority of Canada Bread's Board of Directors were senior officers of Maple Leaf Foods. At the operating level, most of the senior officers of Canada Bread also held positions as senior officers of Maple Leaf Foods. Maple Leaf Food's ownership of Canada Bread continued until 2014.
- Canada Bread was acquired by Grupo Bimbo in 2014. Grupo Bimbo was not told of, nor did it uncover, this prior conduct during the sale process.
- Grupo Bimbo only learned about the conduct in 2017. Under Grupo Bimbo's ownership, Canada Bread provided material and consistent cooperation to the Competition Bureau.
Under new ownership and leadership since 2014, Canada Bread has cooperated with the Competition Bureau's investigation, established controls and initiatives to create a first-tier compliance program and taken the initiative to resolve the investigation today.
"Under 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. We are pleased to have resolved this matter, and we look forward to building upon our investments in Canada" said Alice Lee, Vice President, Canada Bread.
Grupo Bimbo is considering all legal options against those responsible for the conduct addressed in court today.
Canada Bread is a leading producer and distributor of packaged fresh bread and bakery products. The Company has been in business for more than 110 years. Today, Canada Bread is proud to feed Canadian families with safe, high-quality products they can trust. These products are made by Canadians, for Canadians. They are produced at 17 bakeries, distributed from 14 sales centres, and made available at 191 depots across the country. The Company employs approximately 4,400 Canadians.
Grupo Bimbo is the largest Mexican investor in Canada. It is considered one of the "most ethical companies in the world," according to Ethisphere. The Company is dedicated to producing nourishing products and is committed to pursuing sustainability globally. Grupo Bimbo operates 215 bakeries, other plants, and approximately 1,600 sales centers, strategically located in 34 countries throughout the Americas, Europe, Asia, and Africa. Its shares trade on the Mexican Stock Exchange (BMV) under the ticker symbol 'BIMBO'. In the over-the-counter market in the United States, it trades with a Level 1 ADR under the ticker symbol 'BMBOY'.
SOURCE Canada Bread Company, Limited
Canada Bread, Media Relations, [email protected]
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