Bread maker Tiger Brands (TBS) on Monday implemented price increases on its Albany bread brand - soon after the Competition Commission hit it with a R99m fine for admitting a role in bread price-fixing cartel.
"This blatant profiteering is an insult to the nation, particularly the poor. It demonstrates that either the collusion is continuing or the cartel members are acting to maintain the artificially high margins they achieved by acting unlawfully," said Shan Ramburuth, Competition Commissioner.
The Commission has requested an explanation.
Tiger Brands is the only company that has implemented price hikes. Its peers Pioneer Foods, Premier Foods and Foodcorp, which are also implicated in the bread cartel scandal, are expected to follow suit.
"Should evidence show that the collusive behaviour is continuing we are able to withdraw the immunity we've granted to other players. We are also prosecuting the remaining cartel members, Pioneer and Foodcorp. Perhaps most shockingly, we have received new allegations of other anti-competitive behaviour by these parties, which we are vigorously pursuing," said Ramburuth.
Tiger Brands has denied that prices increases were implemented to plug the gap on the R99m, but has cited higher wheat prices.
Wheat prices - which make about 20% of bread input - nearly doubled in the past year to trade around 3 000 rand per ton as the world's wheat inventories shrunk due to threats of crop failure in the world's top wheat exporters.
No comments:
Post a Comment