A COMPETITION tribunal is soon to be held into alleged price fixing and cartel activity by Paarl-based food producer, Pioneer Foods (Pty) Ltd.
Those unfamiliar with Pioneer Food’s brands may recognise them better for their Sasko and Duens Bakeries that supply bread nationwide.
The Competition Commission (CC) revealed in a recent press statement that an investigation was launched to look into national bread price collusion by the major bakeries.
Their findings will then be referred to the Competition tribunal.
According to the statement, the Commission found that Pioneer Foods and Foodcorp contravened the Competition Act and has asked the tribunal to levy an administrative penalty of 10% of their annual turnover for the 2006/7 financial year.
This is not the first time that a food company has been taken to the Competition tribunal.
Recently Premier Foods and Tiger Brands were found guilty on price collusion and Tiger Brands were fined R99 million.
According to the CC press statement, Premier Foods and Tiger Brands were both granted immunity from prosecution in return for their assistance into further investigations and prosecution of the other members of the cartel, Pioneer and Foodcorp.
Pioneer and Foodcorp have denied any wrongdoing and both companies have 20 working days to file responding affidavits and thereafter the Tribunal will hold public hearings into the matter.
Pioneer’s managing director, André Hanekom, would not elaborate on the allegations while the matter is sub judicea.
“I can only confirm that we have now received the case and that our legal representatives can now tackle the matter,” Hanekom said.
Pioneer Foods was recently noted on the JSE. In recent weeks, with the sword of possible prosecution, the share prices plummeted.
