Topic: How To Invest

The Successful Investor Hotline – Friday, December 22, 2017

Article Excerpt

LOBLAW COMPANIES LTD., $68.19, Toronto symbol L, operates 1,096 supermarkets across Canada. It also owns the Shoppers Drug Mart chain of 1,323 drugstores. George Weston Ltd. (Toronto symbol WN) owns 48.5% of Loblaw. It’s also a leading producer of fresh and frozen baked goods. In March 2015, Loblaw and Weston discovered that certain employees colluded with other producers and retailers to fix the price of processed bread products between 2001 and 2015. The companies reported that information to the federal Competition Bureau, and have cooperated with the subsequent investigation. Loblaw and Weston also fired the employees involved in the scheme, and tightened their oversight procedures. This week, Loblaw announced that it would hand out gift cards to consumers to compensate them for the artificially high bread prices. Consumers can register at www.LoblawCard.ca to receive one $25 card redeemable for merchandise at Loblaw’s grocery stores. They do not need to provide proof of any purchases. The company expects the card program will cost it between…