Regulator indicts Victory, Yochananof CEOs over worth fixing

The Israel Competitors Authority at present issued first indictments, following the meals worth fixing investigation, in opposition to 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 expenses that they made public statements, by which Ravid and Victory tried cartel preparations within the meals business, and violations of the Meals Legislation, because of Ravid’s intervention with suppliers in client 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, with the intention 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 depend. 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 searching for to succeed in a cartel association and to lift client costs with suppliers and retailers.

The primary indictment relies on an announcement on October 27, 2021, when Ravid wrote in a Fb submit: “Troublesome days lie forward of us, we are able to 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 advised the Channel 12 client program, “The Shufersal CEO additionally is aware of that over the subsequent 14 days, he’ll obtain on his desk a brand new worth record from between 5 and 7 of his largest suppliers.”

On October 31, 2021 he advised Military Radio, “There’s going to be a really sturdy worth improve” and the identical day he advised Radio 103FM, “Now in the event 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 consider 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 cope with 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 apart from promotions already selected. The association between Victory and Tremendous Barakat concerned an settlement between the events to keep up the events’ gross revenue, after the rise within the buy tax on disposable utensils.

Based on the indictment, on the finish of October 2021, Ravid and Yochananof deputy CEO Harazi, agreed in a cellphone 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, apart from seasonal promotions set prematurely.

Indictments 4-6 cope with offenses beneath the Meals Legislation, which prohibits a retailer from intervening by means of a provider in costs charged by one other retailer. Based on the indictment, Ravid and Victory intervened with the suppliers Dr. Fisher, Schestowitz and Beit Hashita within the client costs of rival retailers.

Based on this indictment, Ravid intervened within the client 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 record and elevated the buyer worth, whereas agreeing with Dr. Fisher’s consultant that the corporate would be certain that the buyer costs of its merchandise would additionally improve at different retailers.

Based on the fifth indictment, Ravid intervened within the costs of Schestowitz at retailers in Might – August 2021, bought on the Rami Levy and Yochananof chains. On this context, Ravid advised the Schestowitz consultant that Rami Levy was “spoiling” and “ruining” the marketplace for Schestowitz by promoting at low cost costs. Ravid additionally acknowledged 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 client 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 improve requests by saying, amongst different issues: “When Rami Levy raises costs, I’ll give it some thought, when Yochananof raises costs, I may even give it some thought…” When a consultant of Beit Hashita requested him to be affected person concerning the rise in client costs at his opponents, Ravid wrote to him that if “the worth will not be greater, I’ll let you know bye.” In one other message, he wrote: I want he would elevate the worth by 20%, “so long as each terrorists elevate,” 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 Legislation and the Meals Legislation.

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 best to be presumed harmless.

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

© Copyright of Globes Writer Itonut (1983) Ltd., 2025.