TBS
TIIH
TBS - Tiger Brands - Response To The Western Cape Competition Commission Bread
Referral
TIGER BRANDS LIMITED "Tiger Brands"
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
TIGER BRANDS RESPONDS TO THE WESTERN CAPE COMPETITION COMMISSION BREAD REFERRAL
Tiger Brands 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."
Bryanston
Date: 14 March, 2007
Sponsor
JP Morgan Equities Limited
Date: 14/03/2007 16:27:08 Produced by the JSE SENS Department.
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