14 March 2007 - Tiger Brands Limited today, in an affidavit filed with the Competition Tribunal by its subsidiary Tiger Food Brands Limited, acknowledged that discussions between personnel at its Albany Bakery business in the Western Cape and its major competitors had taken place in December 2006 -- but said an independent investigation that is under way indicates that the meetings did not give rise to any adverse impact upon consumers.
The affidavit was required to be filed with the Tribunal in response to the referral by the Competition Commission of a complaint alleging that Tiger Food Brands, Premier Foods and Pioneer Foods had “collusively fixed the price of bread and the discount rate payable to independent distributors” and had “divided the market by agreeing not to poach each other’s independent distributors”.
Tiger Brands says as soon as the company became aware of the complaint it instituted an independent investigation headed by Edward Nathan Sonnenbergs who then appointed forensic auditors KPMG and economic experts Econometrix to investigate the matter.
The investigation revealed that the meeting between Albany Bakery, Western Cape employees and its competitors was not called for the purpose of discussing and/or agreeing prices applicable to bread sold in the Western Cape. The meeting was called to discuss the theft of bread crates that is a serious industry problem in the Western Cape and other matters not pertaining to prices.
However, the Albany Bakery personnel did share at the meeting decisions that had already been taken to reduce the discounts given to independent distributors and to implement price increases during December.
No other Tiger Brands employees were aware of, nor authorised, the discussions which took place at these meetings.
In its affidavit, Tiger Food Brands says it was alarmed by the Competition Commission’s referral, but, pending the completion of its own investigations, it could not accept that the alleged offences in terms of the Competition Act had taken place.
In the affidavit Tiger Food Brands indicated that it had extended the independent investigation to its baking and milling operations nationally and had met with the Commission and had undertaken to co-operate fully with it.
“Tiger Brands will at all times co-operate with the authorities, in this matter, to bring to a satisfactory close the legal matters in question, and to proactively eradicate all and any non-compliant conduct.”