Regulator indicts Victory, Yochananof CEOs over worth fixing

The Israel Competitors Authority in the present day issued first indictments, following the meals worth fixing investigation, towards Victory Grocery store Chain (TASE: VCTR) proprietor and CEO Eyal Ravid and Yochananof and Sons (TASE: YHNF) proprietor and CEO Eitan Yochananof and deputy CEO Elad Harazi and Tremendous Bareket CEO Ephraim Tshuva. The Israel Competitors Authority prices that they made public statements, by which Ravid and Victory tried cartel preparations within the meals business, and violations of the Meals Regulation, as a result of Ravid’s intervention with suppliers in shopper costs of different retailers.

Amongst suspects for whom a choice about issuing an indictment has not but been made are Willifood and Strauss executives. Hearings concerning these allegations have been held and the Competitors Authority is analyzing the proof, to be able to decide on whether or not to file indictments.

Ravid is charged with seven counts, Elad Harazi and Ephraim Tshuva are charged with two counts, and Eitan Yochananof is charged with one rely. The indictment was filed after hearings have been held for the businesses and their senior executives.

Within the first cost, Ravid is accused of constructing public statements wherein he sought to convey a message to retailers and suppliers, and to open the door to cost hikes out there. He’s accused of looking for to succeed in a cartel association and to lift shopper costs with suppliers and retailers.

The primary indictment relies on a press release on October 27, 2021, when Ravid wrote in a Fb publish: “Troublesome days lie forward of us, we will say that we face an actual tsunami of worth will increase.” Additional to this, the indictment cited statements made by Ravid in a number of media interviews:

On October 27, 2021 he instructed the Channel 12 shopper program, “The Shufersal CEO additionally is aware of that over the subsequent 14 days, he’ll obtain on his desk a brand new worth listing from between 5 and 7 of his largest suppliers.”

On October 31, 2021 he instructed Military Radio, “There may be going to be a really sturdy worth enhance” and the identical day he instructed Radio 103FM, “Now when you suppose that the producers will soak up this, I do not see anybody who can soak up it, and due to this fact I assume and imagine that the suppliers will include worth will increase, and I made a decision this time to inform everybody in order that they perceive why there are going to be worth will increase in a month or two”

Indictments 2 and three take care of restrictive preparations between Ravid and Victory and Yochananof and Tremendous Barakat. The arrangemnt between Victory and Yochananoff concerned an settlement that, beneath the market circumstances prevailing on the time, the chains wouldn’t maintain promotions aside from promotions already selected. The association between Victory and Tremendous Barakat concerned an settlement between the events to take care of the events’ gross revenue, after the rise within the buy tax on disposable utensils.

In accordance with the indictment, on the finish of October 2021, Ravid and Yochananof deputy CEO Harazi, agreed in a telephone dialog that beneath the market circumstances that prevailed on the time – a scenario wherein there was no change within the chains’ market shares – they might chorus from holding further promotions, aside from seasonal promotions set upfront.

Indictments 4-6 take care of offenses beneath the Meals Regulation, which prohibits a retailer from intervening via a provider in costs charged by one other retailer. In accordance with the indictment, Ravid and Victory intervened with the suppliers Dr. Fisher, Schestowitz and Beit Hashita within the shopper costs of rival retailers.

In accordance with this indictment, Ravid intervened within the shopper costs of Dr. Fisher’s merchandise at different retailers. On the time, Dr. Fisher sought to lift the worth for retailers. Ravid agreed to just accept the brand new worth listing and elevated the patron worth, whereas agreeing with Dr. Fisher’s consultant that the corporate would make sure that the patron costs of its merchandise would additionally enhance at different retailers.

In accordance with the fifth indictment, Ravid intervened within the costs of Schestowitz at retailers in Could – August 2021, offered on the Rami Levy and Yochananof chains. On this context, Ravid instructed the Schestowitz consultant that Rami Levy was “spoiling” and “ruining” the marketplace for Schestowitz by promoting at low cost costs. Ravid additionally said that Schestowitz ought to “paralyze” Rami Levy.

Ravid can also be accused of getting intervened in Beit Hashita costs. In October 2021, Ravid intervened within the shopper worth of Beit Hashita merchandise at different retailers. At the moment, Beit Hashita sought to extend the costs of its merchandise to retailers. Ravid responded to the worth enhance requests by saying, amongst different issues: “When Rami Levy raises costs, I’ll give it some thought, when Yochananof raises costs, I will even give it some thought…” When a consultant of Beit Hashita requested him to be affected person concerning the rise in shopper costs at his opponents, Ravid wrote to him that if “the worth is just not greater, I’ll inform you bye.” In one other message, he wrote: I want he would increase the worth by 20%, “so long as each terrorists increase,” referring to the Rami Levy and Yochananoff chains. As well as, the corporate managers have been accused of violating supervisory duties to stop offenses beneath the Competitors Regulation and the Meals Regulation.

Presumption of innocence: Eyal Ravid, Eitan Yochananof, Elad Harazi and Ephraim Tshuva are suspects within the offenses being investigated and haven’t been convicted of any crime, and have the proper to be presumed harmless.

Printed by Globes, Israel enterprise information – en.globes.co.il – on February 19, 2025.

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