Tiger Brands admits to bread price-fixing, pays fine
Tiger Brands was fined R98,8m by the country's competition authority after admitting that it colluded with rivals to fix the price of bread.
Nasreen Seria, Bloomberg13 November 2007 00:00
Tiger Brands was fined R98,8m by the country's competition authority after admitting that it colluded with rivals to fix the price of bread.
The company was granted leniency against prosecution by agreeing to assist the Competition Commission with investigations into matters such as possible collusion amongst grain millers, the commission said in a statement yesterday.
Independent bread distributors in the Western Cape province complained to the commission in December last year that bakeries owned by Tiger Brands, the maker of Albany bread, Pioneer Foods and Premier Foods had raised prices by between 30c and 35c a loaf a week before Christmas. The commission said in February that its investigation found that bread producers broke the law by colluding.
"The anti-competitive activity that took place was completely unacceptable and contrary to our ethical standards," Tiger Brands CEO Nick Dennis said yesterday. "The company has accepted full responsibility for the actions of the employers involved."
The fine represents 5,7% of Tiger Brands' bread sales last year, the commission said. Other cartel members, who haven't cooperated with the commission's investigations, face penalties of as much as 10% of annual sales, it added.
Tiger Brands informed the commission about collusion in the milling industry following its own investigation, for which the company won't be prosecuted, the commission said.
The company's investigation was conducted by law firm Edward Nathan Sonnenbergs and Econometrix. The study by Econometrix found "no evidence that consumers had been adversely affected" by the bread price-fixing, Tiger Brands said.
Premier Foods, the maker of Blue Ribbon bread, admitted to colluding with the other three producers, the commission said in February, and was granted leniency against prosecution.
Andre Hanekom, MD of Pioneer Foods, wasn't available to comment.
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er, um isn't our good friend Mr Jimmy Manyi the "Director of Corporate Affairs" of Tigerbrands? Seems like he and his incredibly qualified and skilled minions have been naughty boys. Or does a director of Corporate Affairs not have any . .more by Plutarch on November 13 2007, 07:36 Find this comment inappropriate? Report it |
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Very strange, trying to deflect attention away from issue. The issue is if I may remind you, a JSE listed company has fixed one of the most basic food price of which many depend. I doubt it very much if Mr Manyi initiated the whole scheme and . .more by zozo on November 13 2007, 17:17 Find this comment inappropriate? Report it |
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Don't you just love it If I read the article correctly I seem to be informed that the public suffered no prejudice as a result of the price fixing. I cannot tell you how relieved I am at hearing that. So, the price fixing was done to keep the price DOWN and all . .more by Cassandra on November 13 2007, 07:40 Find this comment inappropriate? Report it |
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JAIL TIME I am surprised why people are shocked at this happenning. This type of practice has been happening in all types of industry in South Africa. Where companies collude and fix prices so that they can fleece the poor consumer. This practice will . .more by CONSPIRACY on November 13 2007, 09:02 Find this comment inappropriate? Report it |
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ripped off again so what happens to the money ????whos coffers do they go to???what happened to the car prices investigation???what happened to the maize price investigation??? Sweet FA is what!!! by zak on November 13 2007, 09:09 Find this comment inappropriate? Report it |
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How does the fine benefit the consumer? i'm confused - where does all this money go to? Is it paid as bonuses to the auditors? I can't see how the fine will benefit me or any other bread buying consumer - wheat is more expensive, wages have gone up, petrol costs more - the price of . .more by Jennifer on November 13 2007, 11:06 Find this comment inappropriate? Report it |
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Guilty employees or guilty directors? Why did the employees do it? They acted this way in the face of threats and intimidation from the very top to make more profit. Now Dennis states that "We have accepted full responsibility for the actions of those employees involved ... disciplinary . .more by Lochaber on November 13 2007, 11:22 Find this comment inappropriate? Report it |
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Guilty employees or guilty directors Collusion for years in bread - directors didn't know Collusion in Milling - directors didn't know Collusion in who knows where next. Who is running Tiger? by J.Nose on November 14 2007, 13:57 Find this comment inappropriate? Report it |
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Who gets the benefit of the fine? i'm a bit confused - how will the fine benefit the ordinary bread-buying consumer? Prices are unlikely to drop when wheat prices, salaries and petrol have all risen. Or does the fine go to feed more cats to make them fatter? please can someone . .more by Jennifer on November 13 2007, 12:03 Find this comment inappropriate? Report it |
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Corporate Morality Another proud example of fine Corporate morality. And you be sure there are plenty more by WHAT`S NEW on November 13 2007, 14:37 Find this comment inappropriate? Report it |
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Fall on your Sword Dennis the menace by Bankers friend on November 13 2007, 18:21 Find this comment inappropriate? Report it |
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Buttered on both sides These guys - them and their cohorts - sold millions of loaves for a decade to the whole country, and passed on the stale ones to the underpriveleged as part of their CSI. Jimmy, passing on stale bread is not good corporate citizenry. How . .more by Phreebie on November 14 2007, 08:45 Find this comment inappropriate? Report it |
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What to do with the money? Giving it back to the treasury is too easy. How about something from the left field? There are enough confectionery makers and chemists in our prisons, harnessing their creativity could lead us to having 'divine' bread at half the current price. The . .more by Phreebie on November 14 2007, 09:52 Find this comment inappropriate? Report it |
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Buttered on both sides Believe in Ecometrix and believe in me by Tooth Fairy on November 14 2007, 14:06 Find this comment inappropriate? Report it |
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