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Johannesburg - South Africa's second-largest supermarket chain Pick n Pay Stores [JSE:PIK] said on Friday that it was passing the savings from Pioneer Food Group's [JSE:PFG's] cut to its bread price on to customers.
Earlier this week, the Competition Commission said Pioneer would start implementing price reductions on bread and flour, according to the settlement agreement it reached on November 30 with the commission for antitrust behaviour.
"The price of standard white and brown loaves of bread was reduced by an average of 30c on December 3; this price reduction is in addition to any other promotional discount to retailers," it said.
"The price of flour was reduced by an average of R350 per tonne as from December 10," the antirust body said.
Pick n Pay spokesperson Tamra Veley said it has always been Pick n Pay's practice to pass savings on to South African consumers as far and as quickly as possible, and Pioneer's bread and flour price drop gives the group the opportunity to provide some relief to consumers.
Pioneer's announcement is in compliance with the Competition Tribunal's package of penalties for its involvement in bread price-fixing.
Its price reduction will amount to a drop of R160m in its gross profit when benchmarked against a similar period in the previous year.
Pioneer will submit progress reports to the commission every second month, and PriceWaterhouseCoopers will review and confirm the attainment of the price reduction commitment.
Earlier this week, the Competition Commission said Pioneer would start implementing price reductions on bread and flour, according to the settlement agreement it reached on November 30 with the commission for antitrust behaviour.
"The price of standard white and brown loaves of bread was reduced by an average of 30c on December 3; this price reduction is in addition to any other promotional discount to retailers," it said.
"The price of flour was reduced by an average of R350 per tonne as from December 10," the antirust body said.
Pick n Pay spokesperson Tamra Veley said it has always been Pick n Pay's practice to pass savings on to South African consumers as far and as quickly as possible, and Pioneer's bread and flour price drop gives the group the opportunity to provide some relief to consumers.
Pioneer's announcement is in compliance with the Competition Tribunal's package of penalties for its involvement in bread price-fixing.
Its price reduction will amount to a drop of R160m in its gross profit when benchmarked against a similar period in the previous year.
Pioneer will submit progress reports to the commission every second month, and PriceWaterhouseCoopers will review and confirm the attainment of the price reduction commitment.
