Bread price fixing scandal: Sobeys fires back at Loblaw and Galen Weston | Macleans.ca

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. On Friday the Globe and Mail obtained a copy of a letter sent to Loblaw CEO Galen Weston Jr. by Sobeys CEO Michael Medline in which he threatened to take legal action against its larger rival. Sobeys said it was “outraged” by Weston’s “reckless” assertion about industry-wide price fixing.

Here’s what Medline wrote to Weston:

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.

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Bread price fixing scandal: Sobeys fires back at Loblaw and Galen Weston – Macleans.ca.

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