The Israel Competitors Authority has summoned grocery store chain Shufersal Ltd. (TASE:SAE) and its former CEO Itzik Abercohen and different former managers to a listening to earlier than being filed with an indictment.
In response to the indictment Shufersal and Abercohen allegedly made public statements by way of which he tried to achieve preparations to boost costs. The previous Shufersal managers and the corporate are suspected of violating the Meals Legislation by interfering with the provider Berman within the shopper costs of different advertising chains.
The choice to file an indictment topic to a listening to was made as a part of the investigation into the meals market that started in 2021 by the Investigations Division of the Competitors Authority following public statements, in addition to suspected violations of the Meals Legislation.
In response to the indictment, Abercohen conveyed a message to suppliers and retailers, by way of public statements within the media in October 2021, about Shufersal’s want to boost costs, with the purpose of main to cost will increase within the meals business by suppliers and retailers.
In his statements, which have been revealed in “Ma’ariv”, on the Ynet web site and in “Yediot Ahronoth,” Abercohen mentioned, amongst different issues, “A wave of value will increase is inevitable” and “The quantity of the value enhance will vary between 3% and seven%”, and “I’ve not but been contacted by any giant producer, since everyone seems to be making an effort to keep away from value will increase, however I consider that within the coming weeks the contacts will come.” It’s alleged that Abercohen expressed himself on this method, whereas being conscious of the affect of his statements in the marketplace.
In response to the second suspicion within the indictment, managers at Shufersal agreed with officers at Berman, which provides the chain with bread and baked items, to extend shopper costs for Berman merchandise at Shufersal, and as a part of this, they demanded that Berman staff deal with the patron costs charged by different retailers for its merchandise, in any other case the patron costs for Berman merchandise at Shufersal would return to their earlier ranges. This allegedly violates Part 6 of the Meals Legislation, which prohibits a retailer from interfering with a provider concerning the patron value that one other retailer prices for a commodity.
Abercohen’s attorneys Advs. Ofer Tzur and Avner Finkelshtein of Gornitzky mentioned, “Mr. Abercohen want to clarify that he categorically rejects the allegations attributed to him. Mr. Abercohen served as CEO of Shufersal for a few years and led the corporate whereas strictly adhering to the provisions of the legislation, the ideas of free competitors and accountability in direction of the patron public. All through his tenure, Mr. Abercohen acted with a deep dedication to transparency, correct administration and adherence to the binding regulatory guidelines.
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“The overall statements quoted within the letter of suspicion (for the needs of the listening to), concerning the potential chance of a value will increase, have been made by him orally in response to questions at a single public press convention in 2021. These are a couple of statements concerning international traits and a official interpretation of worldwide financial processes of rising commodity costs and their doable affect on the native market, whereas offering a substantive response to journalists’ questions.
“There was nothing in these normal statements that would set up a suspicion of improper motion or a want to boost costs. The easy reality is that in apply Shufersal didn’t intend to boost costs, however slightly took steps to forestall will increase, fought to forestall costs from rising, and in any case didn’t elevate costs throughout that interval. This speaks for itself.
“Mr. Abercohen didn’t provoke or participate in any association that would hurt competitors or shoppers, and he’s clearly and unequivocally sure that there was no flaw in his conduct. It’s to be assumed that the Competitors Authority can even perceive this after a full and complete evaluate of the proof and listening to the arguments on the listening to.”
Presumption of innocence: Shufersal and the previous managers haven’t been convicted and have the best to be presumed harmless
Revealed by Globes, Israel enterprise information – en.globes.co.il – on April 22, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
