For Loblaw and Weston, $500 million is not as much bread as you think it would be

The $500 million settlement between Loblaw and its parent company, George Weston, for their involvement in a bread price-fixing scheme is a step in the right direction, but it only recovers 10% of the estimated $5 billion consumers lost over 14 years. The investigation led by the Competition Bureau is still ongoing, with four other companies under investigation and no answers regarding their involvement. The scheme involved not just Loblaw and Western Bakeries, but also Walmart Canada, Giant Tiger, Sobeys, and Metro. Loblaw and Western Bakeries admitted guilt back in 2017, and Canada Bread, which was owned by Maple Leaf Foods during the scheme, also admitted guilt last year. The unfinished business includes determining the extent of involvement and penalties for the other companies. Consumer trust has taken a hit, and the full impact of the scheme on consumers and the industry is still unfolding.

Three major grocery retailers in Canada - Loblaw, Gripplestock, and Canada Bread - have admitted guilt and paid hefty fines for price fixing. The total amount paid in fines is $105 million. Four other retailers, including Walmart Canada, Giant Tiger, Metro, and Sobeys, are still under investigation. A grocery code of conduct, which the boycotters had demanded, has been signed by the big five retailers - Costco, Walmart, Metro, Sobeys, and Loblaw. This code will be implemented in June 2025 and will give manufacturers a chance to settle disputes with the retailers. However, the main question remains - will the retailers comply with the rules? Only time will tell.