Chelyabinsk: FAS Looks into Supermarket Chains’ Growing Bread Prices

UrBC, Chelyabinsk, July 29, 2019. Chelyabinsk Region division of Russia’s Federal Antimonopoly Service is currently looking into a complaint placed by a local resident regarding the growing retail bread and pastry prices on offer at Pyaterochka and Magnit supermarket chains, the division’s press service reports.

Now the prices are rising for the bread made by AO Pervy Khlebokombinat, which holds a 50% share of Chelyabinsk Region’s wholesale bread market.

According to the information the FAS’s Chelyabinsk Region division obtained in December 2018, the manufacturer was going to increase its selling bread and pastry price by 5% to 15% in February 2019. The price increase had to do with valid economic factors at play, so the rising selling price did not result in the bread-maker making a bigger profit,’ the press service says.

Fifteen national supermarket chains, including Pyaterochka and Magnit, are now being checked for compliance with Article 11 of the Competition Protection Law.

The FAS’s Chelyabinsk Region division states the need to increase wholesale bread prices was brought about by rising grain prices in the first quarter of 2019, the rising price of flour from the suppliers, the rising price of food ingredients and packaging, workers’ pay adjustments, a 20% increase in the minimum wage amount in May 2018, bigger tax payments, a 10% increase in the cost of hauling companies’ services, and rising heating and energy prices.

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