Witness testimony opens in food market price-fixing trial

Testimony began on Wednesday, a year and a half after indictments were filed in the food market case, focusing on senior executives accused of coordinating actions that would lead to price increases. Among the defendants are Yossi Rabid, controlling shareholder and CEO of the Victori chain, and Eitan Yochananof, CEO and controlling owner of the Yochananof chain. The hearing centered on one of three episodes in the indictment, an alleged attempt by Rabid to pressure suppliers to raise prices at his competitors, including Rami Levy and Yochananof, before raising prices himself.

The prosecution relied heavily on testimony from Eli Shani, Dr. Fischer’s vice president for sales and trade, while Ori Levi, CEO of Beit HaShita, was due to testify but his appearance was postponed. According to material found on Rabid’s phone, seized by the Competition Authority, he made recorded calls and WhatsApp exchanges pressing suppliers, including Shani and Levi, to increase prices. Judge Michael Krashen challenged Shani over a statement he made in the investigation that Rabid was a retailer who sometimes increased consumer prices by a higher percentage than the supplier’s wholesale increase. Shani said he had been referring to cases such as VAT hikes and to the general way retailers use supplier increases.

In WhatsApp messages presented in court, Shani told Rabid after asking him to raise Dr. Fischer prices, “I raised, and the thug from Modiin has not yet raised the catalog price,” referring to Rami Levy. In another message he wrote that, as agreed, everyone would raise prices by Thursday, “Yochananof tomorrow and Shufersal on Wednesday, it’s closed! Thanks for the help.” Shani said he meant retail price when he wrote “catalog price,” and explained that Rabid wanted to be sure he would not be the first or only chain to raise prices. “No one is philanthropic,” Shani said. “Everyone wants everyone else to raise prices like them.”

Shani added that price increases are a rare event, usually only once in a decade and often triggered by supply costs such as during the coronavirus period in 2021. He said suppliers also fear retail backlash, because chains can reject new price lists, pressure suppliers, and delay ordering. The prosecution said the case exposes how the market works behind the scenes and that the law forbids coordinating price hikes, restricting promotions, or coordinating with competitors. Defense lawyers for Victori and Yochananof argued that the indictment is based on exaggerated claims and that similar discussions with suppliers are routine across the sector.