'Canadian chocolate cos involved in price-fixing scheme'
Newly released court documents allege that the Canadian divisions of Nestle, Mars, Hershey and others teamed up in a price-fixing scheme in the multi billion-dollar Canadian chocolate bar market.
By Agencies |
TORONTO: Newly released court documents allege that the Canadian divisions of Nestle, Mars, Hershey and others teamed up in a price-fixing scheme in the multi billion-dollar Canadian chocolate bar market.
Court documents in the case, unsealed by an Ottawa judge Friday, allege that senior executives at Hershey Canada Inc, Mars Canada Inc and Nestle Canada Inc met secretly in coffee shops, restaurants and at industry conventions to set prices.
The allegations are contained in two search warrants granted last month to Canada's federal Competition Bureau as part of an investigation into the chocolate industry. The warrants authorised officials to seize thousands of corporate documents and computer files from Hershey, Mars, Nestle and ITWAL Ltd, a major food distributor. No charges have been filed.
The documents allege the chief executive of Nestle Canada handed envelopes stuffed with pricing information to a competitor, instructing the person not to be seen picking up the material in his office. ITWAL's president also allegedly sent regular updates to participants.
Representatives of Canada's Hershey, Cadbury and Nestle confirmed to The Associated Press on November 28 that the companies were served papers and were cooperating with the investigation. Officials from the chocolate companies could not be reached for comment yesterday.
The alleged collusion is reported to have begun in February 2002 and continued until a few weeks ago.
In the United States, Nestle USA and Mars Inc said this week they will cooperate with a separate Justice Department inquiry into the pricing practises of several chocolate makers in the US.
Court documents in the case, unsealed by an Ottawa judge Friday, allege that senior executives at Hershey Canada Inc, Mars Canada Inc and Nestle Canada Inc met secretly in coffee shops, restaurants and at industry conventions to set prices.
The allegations are contained in two search warrants granted last month to Canada's federal Competition Bureau as part of an investigation into the chocolate industry. The warrants authorised officials to seize thousands of corporate documents and computer files from Hershey, Mars, Nestle and ITWAL Ltd, a major food distributor. No charges have been filed.
The documents allege the chief executive of Nestle Canada handed envelopes stuffed with pricing information to a competitor, instructing the person not to be seen picking up the material in his office. ITWAL's president also allegedly sent regular updates to participants.
Representatives of Canada's Hershey, Cadbury and Nestle confirmed to The Associated Press on November 28 that the companies were served papers and were cooperating with the investigation. Officials from the chocolate companies could not be reached for comment yesterday.
The alleged collusion is reported to have begun in February 2002 and continued until a few weeks ago.
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In the United States, Nestle USA and Mars Inc said this week they will cooperate with a separate Justice Department inquiry into the pricing practises of several chocolate makers in the US.
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