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Johannesburg - The Competition Tribunal on Wednesday imposed a penalty of R195 718 614 on food giant Pioneer for its role in a bread cartel, and has ordered the group to desist from such conduct in future.
The cartel involved the four primary bakeries Tiger (Albany), Premier (Blue Ribbon), Foodcorp (Sunbake) and Pioneer which owns Sasko and Duens bakeries.
Together the four bakeries enjoy a market share of between 50% to 60% of the domestic bread market in South Africa, according to a Competition Commission statement.
The case concerns two complaint referrals brought against Pioneer: one of a bread cartel operating in the Western Cape, and a second of a bread cartel operating in an inland region.
During 2007 Premier Foods sought leniency from the commission for its role in the cartel.
Tiger and Foodcorp subsequently negotiated agreements with the commission, in which they agreed to pay fines. Pioneer opted to fight the case before the tribunal.
"The administrative penalty of R195m amounts to 10% of Sasko's [Pioneer's bread baking division] national 2006 bread turnover," the statement read.
"The Competition Commission asked the tribunal to impose a penalty of 10% of Pioneer's total group turnover, not only on its baking division for each complaint."
- Fin24.com