Grupo Bimbo files US$1.4B lawsuit against Maple Leaf Foods over Canada bread sale

CANADA –  Mexican bakery giant Grupo Bimbo has filed a lawsuit against Canadian food company Maple Leaf Foods and several former senior executives, seeking over CAD 2 billion (US$1.4 billion) in damages.

The lawsuit, lodged in the Ontario Superior Court of Justice, alleges “fraudulent and negligent misrepresentation” related to Grupo Bimbo’s 2014 acquisition of Canada Bread.

Maple Leaf Foods, which held a 90% stake in Canada Bread at the time of the sale, led the negotiations and due diligence, according to Grupo Bimbo. The Mexican company claims Maple Leaf provided misleading information during the sale process.

The lawsuit comes amid a longstanding investigation by Canada’s Competition Bureau into price-fixing in the commercial bread industry, which has implicated multiple firms, including Canada Bread.

In 2023, Canada Bread admitted to participating in price-fixing, pleaded guilty to four charges, and was fined CAD 50 million — the largest such penalty in Canadian history.

Maple Leaf Foods denies claims

Maple Leaf Foods has dismissed Grupo Bimbo’s lawsuit as baseless. Michael McCain, executive chair of Maple Leaf Foods, said in a statement:

“This is an abuse of judicial process, without any merit whatsoever. The Mexican company, Bimbo, is distracting attention from its own mismanagement of a Canadian business, by asserting ridiculous claims which are not even consistent with its own prior admissions.”

McCain added that Maple Leaf Foods would “vigorously” defend against what he called a “frivolous action.”

Grupo Bimbo’s lawsuit follows Maple Leaf Foods’ filing of a CAD 200 million defamation suit against Grupo Bimbo and Canada Bread in November.

Maple Leaf alleges that both companies falsely accused it of using Canada Bread as a “shield” to evade responsibility in the price-fixing scandal.

Maple Leaf’s lawsuit also includes allegations of defamation, competition violations, and conspiracy. It seeks CAD 10 million in punitive damages.

The price-fixing scandal, which has shaken Canada’s bread industry, dates back nearly a decade. In 2015, Canada’s Competition Bureau launched an investigation into alleged collusion among bread manufacturers and retailers, including Canada Bread, Weston Foods, and Loblaw.

In December 2017, Weston Foods and Loblaw admitted their roles in what they described as an “industry-wide price-fixing arrangement.” Both companies were granted immunity from prosecution in exchange for full cooperation with the investigation.

Canada Bread, under Grupo Bimbo’s ownership since 2014, was not so fortunate. In September 2024, Canada Bread filed its own lawsuit against Maple Leaf Foods, seeking compensation for the CAD 50 million fine it incurred.

The lawsuit accuses Maple Leaf of breaching management agreements and failing to act lawfully during its tenure as Canada Bread’s controlling shareholder.

Last month, an Ontario court dismissed a motion to include Maple Leaf Foods in a class-action lawsuit related to the price-fixing case. The court upheld a 2021 decision that excluded Maple Leaf from the broader litigation.

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