Foodcorp has been fined R88.5-million for price fixing and creating a cartel, according to the Competition Commission.
Foodcorp said on Tuesday it denied taking part in any market division activity, but accepted the recent bread price-fixing charges.
The Food and Allied Workers' Union on Tuesday welcomed a fine imposed on bread-maker Foodcorp for admitting a role in bread-price fixing.
Foodcorp will pay a R45-million fine to the Competition Commission after a price-fixing admission, the commission said on Monday.
Pioneer Foods and Foodcorp have been referred to the Competition Tribunal for their alleged role in a bread price-fixing cartel, the Competition Commission said on Wednesday. The two companies could be fined 10% of their annual turnover for the 2006/2007 financial year.
The South African competition watchdog the Competition Commission on Wednesday slammed bread price increases, saying the "blatant profiteering is an insult to the nation". Bread maker Tiger Brands on Monday implemented price increases on its Albany bread brand.