Dam Son, This Bread Price Fixing Scandal In Canada is Getting Heated! 🍞🔥 Battle of the Grocery Giants. Sobeys Claps Back! 🔫😐

So I yesterday I did a post detailing how mega Canadian grocer Loblaw's and Weston bread admitted to a price fixing scandal. They knowingly worked in conjunction to inflate the price of bread products on store shelves all across Canada from 2001 to 2015.

Before the Canadian Competition Bureau filed punitive measures against the company Loblaws admitted their wrong doing publicly in an effort to get ahead of the story.

They also stated that they'll be giving away a $25 gift card to anyone that visits their website and files a claim stating they purchased bread atleast once during those 14 years.

In their press statement Loblaws said that the price fixing was industry wide, more or less implying other companies not under their umbrella were involved aswell, probably trying to fool the public into thinking all grocers in Canada were also participating in this greasy business practice.

Well today Sobeys, the other largest grocery chain fired back. The head of the company, CEO Michael Medline, sent a letter to Loblaws president Galen Weston and threatened legal measures aswell as an old fashioned verbal scolding. Here it is courtesy of MacLean's Magazine;

Dear Galen,

I felt the need to send you a note following your comments of December 19. The Sobeys team, including our executives and Board of Directors, were shocked and outraged by the reckless nature of your assertions in your press release and during your investor/press conference surrounding your admission of wrongdoing (for over a decade) concerning commercial bread pricing.

As you and I both know, the allegation of price-fixing is a terrible charge and one that goes right to the trust that must exist between a retailer and its customers. That is why we were so disappointed that while you were addressing your own actions and immunity deal, you took the opportunity to throw so many other retailers under the bus with you.

To state that there was an “industry-wide price fixing arrangement” was unfair, unsubstantiated, and quite possibly defamatory. You presented it as a statement of fact, when you knew or should have known that your accusation could mislead the Canadian public; you more than implied that the “court filings” contain more substance than they actually do.

We at Sobeys do not believe that we contravened the Competition Act, and reviewing the court filings this week does not change our view. We take the statute and its meaning very seriously. We have not been charged under the Act and we certainly have not been found guilty of any crime. It may be a cliché that a party is innocent until proven guilty, but you seem to have missed that point in this case.

Your written and spoken words of December 19 can only be construed as a deliberate attempt to damage the reputations of Sobeys and, perhaps, other retailers. We formally ask you to publicly and immediately retract your assertion that Sobeys conducted itself in the same manner as Loblaw and Weston and your allegation that, at this time, there is proof of participation by Sobeys in a price-fixing arrangement.

Having said that, we will be closely monitoring the impact of your words on our brand, our business results and our legal rights. We will hold you responsible for any damages we may incur due to your actions.

This whole affair is disappointing. The Canadian consumer deserved better than this.

Regards,

Michael Medline

President & CEO

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Oh snap, shit just got real!

Obviously this is a big story in Canada, living in Nova Scotia my loyalty lies with Sobeys, the company started here and has since spread all across the nation but they're still an underdog compared to megacorp Loblaws. It will be interesting to see where this goes from here? 😁

Thanks for reading and I'll keep you posted if the two CEOs meet up for a good ol' fashioned streetfight.

@goldenarms