Pioneer Foods - Announcement Competition Tribunal

Pioneer Foods today received the decision and order of the Competition Tribunal concerning the two complaint referrals brought by the Competition Commission against the Company, known as the Western Cape Bread Complaint and the National Bread Complaint, in which Pioneer Foods' bread baking division was alleged to have colluded with its competitors, amongst others, on bread prices and market division, in the Western Cape and nationally, in contravention of sections 4(1)(b)(i) and (ii) of the Competition Act.

Today the Tribunal ordered Pioneer Foods to pay an administrative penalty of 9.5% of its bread turnover for the Western Cape in the amount of R46 019 954 in respect of the Western Cape Bread Complaint plus an administrative penalty of 10% of Pioneer Foods' total annual bread turnover less the turnover of bread sales in the Western Cape, in the amount of R149 698 660 in respect of the National Bread Complaint, therefore a total administrative penalty of R195 718 614.

The Company will review the findings of the Competition Tribunal and consider its response after which further announcements will be made.