Canada Bread Takes Legal Action to Protect its Financial and Legal Interests and Files Crossclaim Against Maple Leaf Foods Inc.

TORONTO, Sept. 12, 2024 /CNW/ - Today, Canada Bread Company, Limited ("Canada Bread") took steps to protect its financial and legal interests in connection with the ongoing alleged bread price fixing matter. Canada Bread filed a Statement of Defence and Crossclaim in the Ontario Superior Court of Justice against Maple Leaf Foods Inc. ("Maple Leaf") to hold it accountable for Canada Bread's damages.

In the claim filed today, Canada Bread alleges that Maple Leaf failed to act in accordance with the law and breached its management agreements with Canada Bread. From 1995 to 2014, as the controlling shareholder, Maple Leaf appointed directors to serve on the Canada Bread board of directors and positioned some of the most senior officers of Maple Leaf to operate Canada Bread and occupy the most senior executive role. Maple Leaf represented to Canada Bread that in performing services for Canada Bread it would comply with all applicable laws.

The claim alleges that Maple Leaf's personnel directed and participated in certain anti-competitive conduct, which was the subject of an investigation by the Competition Bureau of Canada ("Competition Bureau") into the commercial bread industry. The investigation led to class actions being brought against Canada Bread and resulted in Canada Bread paying a fine of $50 million in 2023. Canada Bread claims Maple Leaf used Canada Bread as a shield, causing Canada Bread to assume the liabilities of the wrongful conduct, to the benefit of Maple Leaf.

Canada Bread has brought this claim to hold Maple Leaf to account for any and all of its costs, expenses and damages resulting from such breaches, including those related to the Competition Bureau's investigation. Further, to the extent Canada Bread is liable to the Plaintiffs in the class actions, this claim seeks compensation and indemnity from Maple Leaf.

Grupo Bimbo, owner of Canada Bread since 2014, intends to hold accountable those responsible for its damages.

About Canada Bread

Canada Bread is a leading producer and distributor of packaged fresh bread and bakery products. The Company has been in business for more than 110 years. Today, Canada Bread is proud to feed Canadian families with safe, high-quality products they can trust. These products are made by Canadians, for Canadians. They are produced at 16 bakeries, distributed from 183 sales centres, and made available at 191 depots across the country. The Company employs approximately 4,000 associates in Canada.

About Grupo Bimbo

Grupo Bimbo is the leader and largest baking Company in the world and a relevant participant in snacks. Grupo Bimbo has 227 bakeries and plants and more than 1,500 sales centers strategically located in 35 countries throughout the Americas, Europe, Asia and Africa. Its main product lines include sliced bread, buns & rolls, pastries, cakes, cookies, toast bread, English muffins, bagels, tortillas & flatbreads and salty snacks, among others. Grupo Bimbo has one of the largest direct distribution networks in the world with more than 58,000 routes and over 152,000 associates. Its shares trade on the Mexican Stock Exchange (BMV) under the ticker symbol BIMBO, and in the over-the-counter market in the United States with a Level 1 ADR, under the ticker symbol BMBOY.

SOURCE Canada Bread Company, Limited