CANADA – Canada Bread Co, one of Canada’s biggest commercial bakeries and a subsidiary of Bimbo Canada, has been put on a Canadian government ineligible and suspended suppliers list, for its role in an industry-wide price-fixing arrangement involving certain packaged bread products.

The decision by the government of Canada to put Canada Bread Co. on the list comes two months after the company was fined US$ 38M in June after pleading guilty to its role in an industry-wide price-fixing arrangement.

The fine, which was administered by the Ontario Superior Court, is the highest price-fixing fine imposed by a Canadian court.

The 10-year ban, which will last until August 2033 means that the company cannot be considered for federal supply contracts. Canada Bread has previously held contracts with Canada’s Defence Department and Fisheries and Oceans Canada.

Canada Bread, behind brands including Dempster’s and Villagio, admitted to arranging price increases with its competitor Western Foods for products such as sandwich bread, hot dog buns and rolls.

At the time of the price-fixing (late 2001 to March 2015), Canada Bread was under the ownership of Maple Leaf Foods. Grupo Bimbo SAB de CV acquired Canada Bread Co. from Maple Leaf in 2014.

Therefore, the senior leadership of Canada Bread responsible for the price-fixing is no longer with the company.

In June, after its fine was announced, Alice Lee, vice president at Canada Bread, said: “Under new ownership, Canada Bread is committed to being a responsible partner to our valued customers and making bread an accessible and reliable food source for Canadians.

We are pleased to have resolved this matter, and we look forward to building upon our investments in Canada.”

Also in June, The Competition Bureau’s Retail Grocery Market Study called for increased competition in the country’s grocery market.

It urged the country’s government to implement policies to support independent grocers, pointing out that in 2022 Canada’s three largest grocers – Loblaws, Sobeys, and Metro – collectively reported more than C$100bn in sales and earned more than C$3.6bn.

Canada Bread joins four other companies on the list: Les Enterprises Chatel Inc.; R.M. Belanger Ltd.; Guaranteed Industries Ltd.; and 3682021 Canada Inc. (Sports Max). 

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