Perfection Fresh is one of four suppliers the Australian Competition and Consumer Commission (ACCC) is alleging engaged in price fixing when supplying fresh produce to ALDI over seven years from 2018 to 2024.
The suppliers included in the ACCC’s civil proceedings are Perfection Fresh Australia, Hydro Produce (Aust), Veli Velisha Fresh Produce and Velisha National Farms, and M. Fragapane & Sons.
Also included in the Federal Court action are VeliVelisha CEO and director, Catherine Velisha, and senior sales manager, Kaushik Vora, and M. Frangapane & Sones general sales manager, Roberto Nave.
ACCC chair, Gina Cass-Gottlieb, said, “Cartel conduct, whether by coordinating prices or agreeing on terms of bids with competitors, is anti-competitive, and is illegal. In this instance, we allege that price fixing conduct involving some essential household vegetables took place across three states.”
The ACCC said the alleged cartel conduct involved price fixing in some form on 84 occasions, in the supply of fresh produce, including broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts and zucchini, to ALDI stores in New South Wales, Victoria and Queensland between 2018 and 2024.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly,” Cass-Gottlieb said.
A spokesperson for Perfection Fresh told Food & Drink Business that it was working with the ACCC but wouldn’t make further comment while the matter was before the courts.
“Perfection Fresh remains committed to conducting its business with integrity, transparency, and in full compliance with all applicable laws and regulations,” the spokesperson said.
ALDI divides the supply of fresh produce into three categories – agile, standard, and fixed cost. It uses agile pricing for vegetables including broccoli, cauliflower and iceberg lettuce and the ACCC’s price fixing allegations mainly relate to agile supplying.
The ACCC alleges that on 28 occasions, two or more of the suppliers made, or attempted to make, arrangements or understandings that had the purpose, effect or likely effect of fixing, controlling or maintaining the price of broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts or zucchini.
It also alleges that on 48 occasions, one or more of the suppliers then submitted prices to ALDI in accordance with these arrangements or understandings.
The ACCC is seeking declarations, civil penalties, compliance orders and costs against the businesses, and declarations, civil penalties, disqualification orders, non-indemnification orders and costs against the individuals.
