The Israel Competition Authority today issued first indictments, following the food price fixing investigation, against Victory Supermarket Chain owner and CEO Eyal Ravid and Yochananof and Sons owner and CEO Eitan Yochananof and deputy CEO Elad Harazi and Super Bareket CEO Ephraim Tshuva. The Israel Competition Authority charges that they made public statements, by which Ravid and Victory attempted cartel arrangements in the food industry, and violations of the Food Law, due to Ravid's intervention with suppliers in consumer prices of other retailers.
Among suspects for whom a decision about issuing an indictment has not yet been made are Willifood and Strauss executives. Hearings regarding these allegations have been held and the Competition Authority is examining the evidence, in order to make a decision on whether 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 count. The indictment was filed after hearings were held for the companies and their senior executives.
In the first charge, Ravid is accused of making public statements in which he sought to convey a message to retailers and suppliers, and to open the door to price hikes in the market. He is accused of seeking to reach a cartel arrangement and to raise consumer prices with suppliers and retailers.
The first indictment is based on a statement on October 27, 2021, when Ravid wrote in a Facebook post: "Difficult days lie ahead of us, we can say that we are facing a real tsunami of price increases." Further to this, the indictment cited statements made by Ravid in several media interviews.
On October 27, 2021 he told the Channel 12 consumer program, "The Shufersal CEO also knows that over the next 14 days, he will receive on his desk a new price list from between five and seven of his biggest suppliers."
On October 31, 2021 he told Army Radio, "There is going to be a very strong price increase" and the same day he told Radio 103FM, "Now if you think that the manufacturers will absorb this, I don't see anyone who can absorb it, and therefore I assume and believe that the suppliers will come with price increases, and I decided this time to tell everyone so that they understand why there are going to be price increases in a month or two"
Indictments 2 and 3 deal with restrictive arrangements between Ravid and Victory and Yochananof and Super Barakat. The arrangemnt between Victory and Yochananoff involved an agreement that, under the market conditions prevailing at the time, the chains would not hold promotions other than promotions already decided on. The arrangement between Victory and Super Barakat involved an agreement between the parties to maintain the parties' gross profit, after the increase in the purchase tax on disposable utensils.
According to the indictment, at the end of October 2021, Ravid and Yochananof deputy CEO Harazi, agreed in a phone conversation that under the market conditions that prevailed at the time — a situation in which there was no change in the chains' market shares — they would refrain from holding additional promotions, other than seasonal promotions set in advance.
Food Law indictments
Indictments 4-6 deal with offenses under the Food Law, which prohibits a retailer from intervening through a supplier in prices charged by another retailer. According to the indictment, Ravid and Victory intervened with the suppliers Dr. Fisher, Schestowitz and Beit Hashita in the consumer prices of rival retailers.
According to this indictment, Ravid intervened in the consumer prices of Dr. Fisher's products at other retailers. At the time, Dr. Fisher sought to raise the price for retailers. Ravid agreed to accept the new price list and increased the consumer price, while agreeing with Dr. Fisher's representative that the company would ensure that the consumer prices of its products would also increase at other retailers.
According to the fifth indictment, Ravid intervened in the prices of Schestowitz at retailers in May — August 2021, sold at the Rami Levy and Yochananof chains. In this context, Ravid told the Schestowitz representative that Rami Levy was "spoiling" and "ruining" the market for Schestowitz by selling at cheap prices. Ravid also stated that Schestowitz should "paralyze" Rami Levy.
Ravid is also accused of having intervened in Beit Hashita prices. In October 2021, Ravid intervened in the consumer price of Beit Hashita products at other retailers. At that time, Beit Hashita sought to increase the prices of its products to retailers. Ravid responded to the price increase requests by saying, among other things: "When Rami Levy raises prices, I will think about it, when Yochananof raises prices, I will also think about it..." When a representative of Beit Hashita asked him to be patient regarding the increase in consumer prices at his competitors, Ravid wrote to him that if "the price is not higher, I will tell you bye." In another message, he wrote: I wish he would raise the price by 20%, "as long as both terrorists raise," referring to the Rami Levy and Yochananoff chains. In addition, the company managers were accused of violating supervisory duties to prevent offenses under the Competition Law and the Food Law.
Presumption of innocence: Eyal Ravid, Eitan Yochananof, Elad Harazi and Ephraim Tshuva are suspects in the offenses being investigated and have not been convicted of any crime, and have the right to be presumed innocent.