Pioneer Foods appears before Competition Tribunal

Pioneer Foods said on Thursday, 25 June 2009, that it had appeared before the Competition Tribunal to defend itself against complaint referrals on allegations of anti-competitive behaviour in the Western Cape, and of participating in a national bread cartel.

Pioneer said that it was confirmed that during 2007, in its response to the Western Cape complaint referral, the group admitted to certain facts relating to collusion in the Western Cape.

Relief sought by the Competition Commission was for the imposition of an administrative penalty of 10% of the 2006 revenue from the production and sale of bread in the Western Cape.

Revenue of the Western Cape baking division of the group amounted to R384 million for the year ended 30 September 2006.

Pioneer said it continued to defend itself against all other allegations including participation in a national bread cartel.

It added that both parties had delivered evidence and had closed their cases, with final legal arguments to be delivered in September.

"Pioneer Foods remains committed to the principles of good corporate governance and further entrenching its Legal Compliance Programme," the group concluded.

Published courtesy of