Canada Bread has agreed to pay at least $50 million for its role in fixing the price of bread for years, according to documents filed in an Ontario court.
Canada Bread has agreed to pay at least $50 million for its role in fixing the price of bread for years, according to documents filed in an Ontario court.
Fantastic! Loblaws and every other responsible party next, please!
[Edit]
An incomplete list of said responsible parties.
For real. This “our profit margin hasn’t increased” argument is BS. If it’s a percentage, it’s increased at the rate of YOUR inflation. That’s why you can simultaneously make the profit margin argument, while toting record profits at investor’s meetings.
If I sell lettuce at $1 and make $0.10 profit, I have a 10% profit margin. Mark every step of the way up to my store and sell the same lettuce for $10 and make $1 profit, I STILL have a 10% profit margin. But now I can also tell my investors I have increased profits 900%
I’m sure there’s lots of arms length vertical integration to spread these higher costs around to as well. Example: Rogers stores, service techs, etc are all “technically” subcontractors. Numbered companies with Rogers logos on everything.
I’d be pretty damn surprised if Loblaws et al don’t have their hands in the logistics ends of their businesses. ___
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I saw McDonald’s use this tactic in The Founder. They franchise (No Frills) to remove additional costs for themselves, but it also means they can bully owners with the leasing rates. win-win
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Same way Ticketmaster operates.
They use “demand based ticket pricing” and own all the third-party resellers.
So they can release tickets, buy them all themselves through their third party resellers, claim high demand and increase prices.
Corporate landlords are doing the same thing with homes.