A leading bread manufacturer in Canada has been ordered to pay a record-breaking fine of C$50m ($38m; £30m) for its involvement in a price-fixing scheme, marking the highest penalty ever imposed by a Canadian court.

Canada Bread, now owned by Mexican company Grupo Bimbo, pleaded guilty to four charges of price-fixing dating back to the mid-2000s.

The substantial fine is the result of a lengthy investigation conducted by a federal competition authority. The Competition Bureau hailed this as a significant milestone in its ongoing probe, emphasizing that manipulating the cost of a household staple like bread is a serious criminal offense.

Court documents reveal that Canada Bread colluded with competitor Weston Foods to artificially inflate prices for various bread products, including sandwich bread, rolls, and hot dog buns. The illicit price-fixing scheme resulted in two separate price hikes in 2007 and 2011. Prior to its acquisition by Grupo Bimbo, Canada Bread was under the ownership of Maple Leaf Foods.

Grupo Bimbo stated that it had no knowledge of any price manipulation when it acquired Canada Bread in 2014 and remained unaware until search warrants were issued in 2017.

Upon assuming ownership, Canada Bread, now under new management, expressed its commitment to responsible partnership with customers and ensuring accessible and dependable bread supply for Canadians, according to Vice President Alice Lee.

The Competition Bureau confirmed that the senior executives responsible for the price-fixing scheme are no longer employed by Canada Bread.

Maple Leaf Foods, a former shareholder, asserted its lack of awareness regarding any wrongdoing by Canada Bread or its senior leadership during their association.

The Competition Bureau emphasized that the investigation into bread price-fixing remains a top priority, estimating that around C$1.50 was added to the price of bread over the course of the alleged 16-year scheme.

In December 2017, Weston Foods and Loblaw Companies Limited acknowledged their involvement in an "industry-wide price-fixing arrangement" involving the coordination of retail and wholesale bread prices, granting them immunity from prosecution in exchange for cooperation.

Several other prominent grocery companies operating in Canada are currently under investigation, although none have admitted any participation.

Additionally, the Competition Bureau is set to conclude its investigation into competition within the country's grocery sector this month, which was initiated in response to rising food prices associated with inflation, as indicated by grocery retailers.