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Why You're Paying More Than You Should: Tesco Merges with Pro Price Fixer Supplier

Booker, a wholesale food retailer in the UK, has been fined twice for anti-competitive practices that harmed consumers and small businesses. In 2007, the company was found to have colluded with other wholesalers to fix prices for certain products, leading to higher prices for customers, including small retailers and independent convenience stores. Booker was fined £1.75 million and agreed to change its business practices.

In 2016, the company was fined £5 million for giving preferential treatment to its own retail customers, making it difficult for independent stores to compete. The Competition and Markets Authority (CMA) found that Booker's actions reduced competition and put independent stores at a disadvantage. Booker disputed the findings, but the CMA maintained that the company's practices were anti-competitive and harmful.

In 2018, the CMA launched an investigation into the proposed merger between Booker and Tesco, the UK's largest supermarket chain, over concerns about the impact on suppliers and abuse of market power. As a result, the CMA imposed certain conditions on the merger to address these concerns.

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Greenyard Fresh, a major producer of frozen vegetables, has faced a number of food safety issues in recent years. In 2016, a Listeria outbreak linked to their frozen vegetables occurred in several countries, including the United States, Canada, and the United Kingdom, resulting in 9 deaths and 33 illnesses in the US alone.

In 2018, Greenyard Fresh faced legal action in the UK after a salmonella outbreak was linked to one of its products, affecting over 50 people in the UK. The company was found to have failed to implement adequate food safety measures and was fined £9 million, one of the largest fines ever imposed in the UK for a food safety violation.

Greenyard Fresh was also fined €31.6 million by the European Commission in 2019 for participating in a cartel that fixed prices, allocated customers, and shared markets for the supply of frozen and canned vegetables, mushrooms, and fruits.

In addition, a Listeria outbreak occurred in the Netherlands, Belgium, and Germany in 2018 and 2019, affecting over 40 people and claiming 9 lives, which was traced back to frozen vegetables produced by Greenyard Fresh.

The Dutch authorities found that Greenyard Fresh had violated food safety regulations and imposed a fine of £1 million on the company in 2020. Despite these food safety issues, major retailers such as Tesco, Sainsbury's, Asda, Morrisons, Aldi, and Lidl continue to accept supplies from Greenyard Fresh.