Israel’s Competition Authority opened the evidence phase on Sunday at the Lod District Court in the case it calls a flagship effort to prove coordinated price manipulation in the grocery sector. The hearing is being overseen by Judge Michael Kreshn, and the defendants include Victory CEO and owner Eyal Ravid, Yochananoff owner Eitan Yochananoff, former Yochananoff deputy CEO Elad Harzi, Super Brakat manager Ephraim Teshuva, and the companies themselves.
The indictment accuses them of trying to form illegal restraints of trade with retailers and suppliers, using public statements in the media and on Facebook, as well as direct intervention in rivals’ pricing. Prosecutor Adv. Ofer Maoz said, “The defendants sought to open the door for suppliers and push coordination that directly hit every one of our pockets.” The state says Ravid and Yochananoff tried to create a “tsunami of price increases,” and that Ravid was charged in six counts tied to attempts at cartel-like agreements. Products named in the case include Dr. Fischer, Shastovich, Beit HaShita, and disposable goods.
According to the prosecution, Ravid used interviews and social media strategically to send suppliers a message: “You can raise prices, I will not object.” Investigators say this was meant to remove the main barrier to supplier price hikes, fear that major chains would refuse them. Material seized in a raid on Victory’s offices allegedly showed Ravid complaining that Rami Levy would not raise prices, and pressing suppliers to raise prices for the rival chain so it would have to follow the market.
The case first became public through broader scrutiny of food-price increases, including a viral investigation by The Tube program and a consumer boycott dubbed the “pasta revolt,” which its organizers say helped stop the wave of hikes. The Competition Authority began its wider probe in late 2021 in what was called the Shufersal affair, including raids, seizures of computers and phones, and review of internal messages. The defense says the case is “a criminal story that never happened,” arguing Ravid’s remarks were part of a legitimate market debate, not illicit coordination. The trial is expected to continue for months, with more witnesses and examinations, and could shape future retail competition rules in Israel.
