It was small grocers
complaining about rising bread prices that prompted the Canadian Bureau of
Competition Policy to launch an investigation.
The bureau has obtained
search warrants for offices of Loblaws Cos. Ltd., Metro Inc. and Wal-Mart
Canada Corp.
The grocers complained to
their organization, the Canadian Federation of Independent Grocers, when they
noticed prices rising in lock step by the dominant bakers, Canada Bread Co.
Ltd., owned by Bimbo Bakery of Mexico, and George Weston Ltd., owner of Weston’s
Bakery and of Loblaws, Zehrs, etc.
The bureau investigation,
which goes back to 2001, also involves Sobey’s and Giant Tiger, reports the
Globe and Mail. That indicates pricing concerns date back to when Maple Leaf Foods owned Canada Bread which it sold to Bimbo Baker in February, 2014.
"Over the past couple of years, some of our
independent small-business grocers have raised concerns with respect to the
pricing by Canada Bread and Weston," said Gary Sands, senior
vice-president of the Canadian Federation of Independent Grocers.
"We did not file a complaint ourselves, but we
shared these complaints with the bureau," he said.
