Watchdog raids offices over alleged grocery price-fixing

The Competition Bureau TORONTO says it has raided the offices of certain companies in a criminal investigation tied to alleged price-fixing following statements released by some of the country’s largest grocery chains.

The bureau says the Ontario Superior Court of Justice in Ottawa granted search warrants based on evidence that there are reasonable grounds to believe individuals and companies have engaged in activities contrary to the Competition Act.

Spokeswoman Marie-France Faucher says bureau officers are conducting searches and gathering evidence to determine the facts. She says there is no conclusion of wrongdoing at this time and no charges have been laid, adding she couldn’t reveal more details as the bureau is required to conduct investigations confidentially.

Loblaw Companies Ltd. and George Weston Ltd., which owns Loblaws, confirmed they’re aware of an industry-wide probe by the Competition Bureau concerning a price-fixing scheme involving certain packaged bread products.

Loblaw-owned stores that operate in B.C. include Real Canadian Superstore, T&T Supermarket, Shoppers Drug Mart, No Frills, Supervalu, Your Independent Grocer, Loblaws and Loblaws City Market. There are 186 Shoppers Drug Marts, 28 Real Canadian Superstores and two Loblaws in B.C.

George Weston and Loblaw said in a joint statement that they are co-operating fully, but wouldn’t offer further comment.

B.C.-based Overwaitea Food Group, which operates Overwaitea Foods, Save- On-Foods, Urban Fare and PriceSmart Foods, couldn’t be reached for comment and it’s unclear whether they’re part of the investigation.

Metro Inc., Canada’s third-largest food retailer, said it fully cooperates with the authorities, but also declined further comment.

George Weston and Loblaw said in a statement that they are co-operating fully.