Five questions answered on Nestle and Mars price fixing charge

Hershey also involved.

Canadian authorities have charged chocolate giants Nestle and Mars, along with several independent wholesale distributors, over alleged chocolate price fixing. We answer five questions on the charges.

Why have the Canadian authorities charged Nestle and Mars?

The Canadian Competition Bureau, based in Ottawa, say the have uncovered evidence that Nestle and Mars fixed the price of chocolate, which is a criminal offence.

The bureau uncovered the alleged offences through its immunity scheme, whereby the first person to disclose an offence may receive immunity from persecution, providing they cooperate fully.

The bureau charged Nestle Canada, Mars Canada, and the distributors ITWAL.

Are any other chocolate companies involved in the scandal?

Yes, the Canadian division of US confectionary company Hershey is said to have cooperated in the bureau’s five-year long investigation into the alleged price fixing offences. Because of the company’s cooperation they are expected to be treated with leniency.

In a statement Hershey blamed ex-employees for the offences:

"The current Hershey Canada senior management team as well as The Hershey Company and its management had no involvement in this conduct," the statement said.

What has Mars Canada said about the allegations?

In a statement the company said:

"Mars Canada intends to vigorously defend itself against these allegations. It is Mars Canada's policy not to comment on pending litigation and we are therefore unable to make any additional comments in relation to this matter, which is now before the court."

What has the Canadian competition Bureau said about the case?

"We are fully committed to pursuing those who engage in egregious anti-competitive behaviour that harms Canadian consumers," said John Pecman, Interim Commissioner of Competition, speaking to the BBC.

"Price-fixing is a serious criminal offence and today's charges demonstrate the Competition Bureau's resolve to stop cartel activity in Canada," he added.

Have any individuals also been charged as part of the investigation?

Yes. Robert Leonidas, the former chief executive of Nestle Canada; Sandra Martinez, former Nestle Canada president and David Glenn Stevens, president and chief executive ITWAL Limited have all been charged and, if convicted, face up to five years in prison. The companies and executives could each be fined up to £6.5m ($10m).

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Getty
Show Hide image

Keir Starmer's Brexit diary: Why doesn't David Davis want to answer my questions?

The shadow Brexit secretary on the resignation of Sir Ivan Rogers, the Prime Minister's speech and tracking down his opposite in government. 

My Brexit diary starts with a week of frustration and anticipation. 

Following the resignation of Sir Ivan Rogers, I asked that David Davis come to Parliament on the first day back after recess to make a statement. My concern was not so much the fact of Ivan’s resignation, but the basis – his concern that the government still had not agreed negotiating terms and so the UKRep team in Brussels was under-prepared for the challenge ahead. Davis refused to account, and I was deprived of the opportunity to question him. 

However, concerns about the state of affairs described by Rogers did prompt the Prime Minister to promise a speech setting out more detail of her approach to Brexit. Good, we’ve had precious little so far! The speech is now scheduled for Tuesday. Whether she will deliver clarity and reassurance remains to be seen. 

The theme of the week was certainly the single market; the question being what the PM intends to give up on membership, as she hinted in her otherwise uninformative Sophy Ridge interview. If she does so in her speech on Tuesday, she needs to set out in detail what she sees the alternative being, that safeguards jobs and the economy. 

For my part, I’ve had the usual week of busy meetings in and out of Parliament, including an insightful roundtable with a large number of well-informed experts organised by my friend and neighbour Charles Grant, who directs the Centre for European Reform. I also travelled to Derby and Wakefield to speak to businesses, trade unions, and local representatives, as I have been doing across the country in the last 3 months. 

Meanwhile, no word yet on when the Supreme Court will give its judgement in the Article 50 case. What we do know is that when it happens things will begin to move very fast! 

More next week. 

Keir