Canada 14 years of Loblaws bread price-fixing may have cost you at least $400

00:51  12 january  2018
00:51  12 january  2018 Source:   macleans.ca

Bakery to offer free bread in exchange for bread price-fixing $25 gift cards

  Bakery to offer free bread in exchange for bread price-fixing $25 gift cards A local bakery in Kamloops, B.C., is offering customers five loaves of bread in exchange for their $25 gift cards to Save-On-Foods and Loblaws grocery stores, which they will then donate to local charities.AMZN

If a family buys one bagged bread per week for a year, that’s a difference—a lot when compared to the gift cards Loblaws has offered as their mea-culpa for 14 years of fixing prices . The average price gap from 2002 to 2014 was 55 cents, Grier

Loblaws is offering Canadians a gift card after a nationwide bread price - fixing scandal was revealed. Jason MarkusoffVerified account @markusoff · Jan 31. Here’s how 14 years of bread price fixing could have easily cost families an extra $ 400 , and the many statistical ways the prices

(iStock; Shutterstock)© Used with permission of / © Rogers Media Inc. 2018. (iStock; Shutterstock)

As word emerged about the Loblaws chain and bread-maker George Weston Ltd. confessing their role in a massive price-fixing scheme, analysts often referred to bread as a supermarket loss leader. Think of this like your favourite pub’s wing night: they lower prices to a level below what it costs to make and serve them, in hopes of getting patrons in the door and guzzling beer. Wonder Bread or Dempster’s Whole Wheat, the argument goes, would similarly be offered at cut-rate prices to bring in shoppers who will generate money for grocers in other aisles.

Loblaws’ price-fixing on bread may have cost you at least $400

  Loblaws’ price-fixing on bread may have cost you at least $400 Any way you slice it, Canadian bread shouldn’t have cost this muchWNGRF

Canadians had been victimised over a 14 - year [1] or a 16-year[3] period, the bureau said, noting that the scheme inflated the price of bread by at least .50.[4] It became known to insiders as Jason Markusoff (11 Jan 2018). " Loblaws ' price - fixing may have cost you at least $ 400 ". macleans.ca.

14 years of Loblaws bread price - fixing may have cost you at least $ 400 . Any way you slice it, Canadian bread shouldn’t have cost this much.

It’s hard for analysts to say definitively that bagged bread is a loss leader; there’s plenty that isn’t clear about the economics in Canadian grocery stores, as evidenced by the Competition Bureau’s ongoing price-fixing investigation of multiple chains and suppliers, on top of the fact the scheme Loblaws and its sister manufacturing company admitted went undetected from mid-2001 until March 2015.

READ: You can sign up for the $25 Loblaw gift card starting today. Here’s how.

Moreover, many of the price figures we can see suggest bread is the opposite of a loss leader. Rather, there are many signals and comparisons that suggest bread became a much more lucrative product for supermarkets over the 14 years in question.

As Maclean’snoted last month, from 2001 to 2015 the consumer price index for bread rose dramatically more than did the average for all food prices. In addition to tracking bread for the key inflation measure, Statistics Canada also reports the monthly average price for a loaf of bread. The loaf that cost you $1.42 in July 2001, was a $3.04 in March 2015—more than double the (ahem) dough.

Former Manitoba grand chief files $1B class-action suit over bread price-fixing

  Former Manitoba grand chief files $1B class-action suit over bread price-fixing Derek Nepinak, the former grand chief of the Assembly of Manitoba Chiefs, has filed a $1 billion class-action lawsuit against multiple Canadian grocers after Loblaw Companies revealed it participated in industry-wide bread price-fixing for 14 years. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.

The competition bureau's investigation into alleged bread price - fixing involves at least seven companies. George Weston Ltd. and Loblaw Under the Competition Act, penalties for price - fixing include fines of up to million and imprisonment to a maximum term of 14 years , or both.

Ltd. has admitted to participating in a scheme to increase packaged bread prices for more than 14 years , saying it will co-operate with a Competition Bureau investigation into the industry. How to receive a Loblaw card after bread price - fixing arrangement.

Kevin Grier, a food market analyst based in Ontario, measured what bread should have cost if it rose in tandem with overall food price inflation. By 2015, there’s a $1 gap between the real price and Grier’s price. If a family buys one bagged bread per week for a year, that’s a $52 difference—a lot when compared to the $25 gift cards Loblaws has offered as their mea-culpa for 14 years of fixing prices. The average price gap from 2002 to 2014 was 55 cents, Grier says—or that one loaf per week over that period may have plumped up a grocery bill by $371.80.

a screenshot of a social media post© Used with permission of / © Rogers Media Inc. 2018.

The appearance of inordinate price increases does not necessarily mean there was price fixing, Grier notes. “It raises your attention, that if they did do it, you can see it,” he says. “But it doesn’t prove that they did anything.”

READ: Where to donate your $25 Loblaws gift card: find your nearest food bank here

Loblaws in $400M tax fight with CRA over claims it set up bogus offshore bank

  Loblaws in $400M tax fight with CRA over claims it set up bogus offshore bank Loblaws and the government squared off in court today in one of the biggest offshore corporate tax-avoidance cases in the country, with authorities alleging the grocery conglomerate set up a bogus foreign bank to avoid tax on hundreds of millions of dollars in income. Normally, those profits could legally avoid income tax in Canada under an exemption for the investment earnings of Canadian-owned foreign banks. © Provided by Canadian Broadcasting Corporation The name of Loblaws subsidiary Glenhuron Bank Ltd. is seen in 2010 listed on the directory at the CGI Tower in Barbados.

Registration closes May 8. Loblaw admits to bread price - fixing scheme spanning more than 14 years . Explainer: What is price - fixing and how does it work? Retail. Sobeys slashes staff amid digital push Subscriber content.

Loblaw ’s attempt to smooth over a bread price - fixing scandal with a gift card appears to be paying off — at least for some customers. According to Statistics Canada, Canadian households spent an average of 0 a year on bread since 2010.

And perhaps it’s unfair to assume the bread cost should have lined up neatly with the cost of other groceries. That would discount the fluctuations in grain prices over the years, particularly with last decade’s spike in crop use as biofuel. Let’s consider the price of milled flour, using the industrial price index, and see how that compared with bread in the consumer price index.

Oh my.

a close up of a map© Used with permission of / © Rogers Media Inc. 2018.

It’s equally jarring when you consider how prices for loaves in the U.S. have risen over time. According to the Bureau of Labor Statistics, American consumers saw bread prices rise half as fast as happened in Canada during the time of Loblaws’ misconduct.

a close up of a map© Used with permission of / © Rogers Media Inc. 2018.

Outside of Canadian supply-managed foods like dairy and eggs, Canada and U.S. foods generally follow the same price trajectory. Here’s bacon:

a close up of a map© Used with permission of / © Rogers Media Inc. 2018.

And here’s retail flour:

a screenshot of a map© Used with permission of / © Rogers Media Inc. 2018.

Lastly, in a note to subscribers of his market reports, Grier also looked at the price spread between bread and its most friendly spread: butter. “In 2002 a loaf of bread was valued at 45 per cent of a pound of butter,” he writes. “By 2015 bread was worth 64 per cent of a pound of butter.”

Is price fixing a major problem in Canada?

  Is price fixing a major problem in Canada? Opinion: Despite the righteous outrage over an admitted scheme to fix the price of bread, the reality is that Canada’s system largely worksEditor’s note: The opinions in this article are the author’s, as published by our content partner, and do not represent the views of MSN or Microsoft.

Loblaw and its parent company George Weston Ltd. revealed Tuesday they alerted the Competition Bureau after discovering a 14 - year -long bread price - fixing arrangement. (Carlos Osorio / Toronto Star).

Earlier this week, Loblaw Cos Ltd. and its parent company George Weston Ltd. admitted to participating in a 14 - year price - fixing conspiracy that inflated the cost of bread on the shelves of nearly every major grocery chain in Canada.

a screenshot of a cell phone© Used with permission of / © Rogers Media Inc. 2018.

It could take years before the Competition Bureau reveals what really took place between Loblaws, Sobeys, other chains and their packaged bread suppliers. On the bright side, bread prices have stopped rising, and settled to around the same prices they were in 2011. But the past increases do seem to leave a trail of breadcrumbs for the suspicious.

MORE ABOUT LOBLAW:

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Judge rules Loblaw gift card terms not misleading .
TORONTO - An Ontario judge has ruled that it's too early to determine the enforceability of Loblaw Companies Ltd.'s policy that consumers who receive a $25 gift card from the company waive their right to that sum in possible future settlement money from a bread price-fixing scheme class-action lawsuit. Ontario Superior Court of Justice Edward M. Morgan dismissed a motion challenging the terms of Loblaw's gift card plan. The company announced Monday L

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