A Maple Leaf Foods plant in Toronto is shown on Oct. 19, 2011. THE CANADIAN PRESS/Frank Gunn
Maple Leaf Foods has firmly denied any involvement in an alleged bread price-fixing scheme as it faces the possibility of being added to an ongoing class-action lawsuit. In a statement released Wednesday, the company insisted that accusations of its participation in the conspiracy are baseless.
“Maple Leaf Foods has done nothing wrong,” the company asserted on its website.
The class-action lawsuit, which was certified in Ontario in 2021, initially targeted several grocery retailers and food companies, excluding Maple Leaf. However, during a hearing on Thursday, the plaintiffs argued that Maple Leaf should be included as a defendant due to its ownership of Canada Bread during the period when the alleged price-fixing occurred.
Canada Bread, which admitted to four counts of price-fixing and was fined $50 million by the Competition Bureau in 2023, has argued in the lawsuit that Maple Leaf, its majority owner at the time, should be held accountable.
Jay Strosberg, managing partner at Strosberg Wingfield Sasso LLP, stated in an email, “Based on new evidence from Canada Bread’s guilty plea, we believe Michael McCain and Maple Leaf Foods were personally involved in defrauding Canadian consumers and should be scrutinized alongside the other defendants.”
Michael McCain, former CEO and current executive chairman of Maple Leaf Foods, has denied any involvement in the alleged conspiracy. In an August 2023 statement, he maintained that Canada Bread’s pricing practices were lawful and consistent with industry standards.
Recent court filings reveal that Canada Bread has accused Maple Leaf of using it as a "shield" to avoid responsibility in the alleged scheme. Maple Leaf was Canada Bread’s controlling shareholder until it was sold to Grupo Bimbo in 2014. Canada Bread contends that Maple Leaf knew, or should have known, about any anti-competitive practices, making it "vicariously and contractually liable."
Maple Leaf dismissed these claims on Wednesday, suggesting that Canada Bread is attempting to shift blame to recover damages. The company emphasized that it will vigorously defend itself against what it called “unfounded claims.”
This class-action lawsuit is one of two initiated following an ongoing investigation by the Competition Bureau into an alleged industry-wide conspiracy to inflate bread prices. The Bureau, which began its investigation in 2016, has alleged that the price of a loaf of bread increased by at least $1.50 over 16 years.
Loblaw and Weston Foods, subsidiaries of George Weston at the time, admitted to participating in the price-fixing scheme and received immunity from prosecution in exchange for their cooperation. Other grocers and food companies, however, have denied involvement, with Metro recently accusing Loblaw and George Weston of trying to shift the blame across the industry. Loblaw has refuted Metro’s claims.
Recently, Loblaw and George Weston agreed to pay a combined $500 million to settle the two class-action lawsuits in Ontario and Quebec.
