Victory CEO Alleges Price-Fixing Pressure on Suppliers to Raise Competitors' Prices First

Ayal Ravid, CEO and controlling shareholder of the Israeli retail chain Victory, was recorded telling Uri Levi, CEO of canned goods company Beit HaShita, that he would only approve price increases if rival chains Rami Levy and Yohananof raised their prices first. The conversation, played Wednesday at the Central District Court in Lod during the evidentiary phase of a price-fixing case, reveals alleged coercion by Ravid on suppliers to delay price hikes until competitors comply. Ravid referred to the rival chains, both founded by Kurdish immigrants, implying respect for them while dismissing his own status as an Arab from Tunisia.

The case centers on accusations that Ravid pressured three suppliers, Dr. Fischer, Shestovitz, and Beit HaShita, to raise prices at competing chains before approving increases at Victory. This conduct allegedly violates Israeli food law, which prohibits retailers from interfering with competitors’ pricing. Uri Levi testified that retailers generally resist raising consumer prices and that negotiations over price hikes are a daily struggle. If suppliers and retailers cannot agree, suppliers may halt deliveries, effectively blocking the retailer.

In the recorded exchange, Ravid urged Levi to be patient until other chains raised prices, expressing frustration over empty shelves and lost sales. Levi responded that Rami Levy was particularly anxious about stock shortages and expected price increases within days. Ravid warned Levi he would replace Beit HaShita with other suppliers if prices were not raised by Sunday.

The revelations stem from an investigation by the Israeli Competition Authority and were first exposed by Calcalist. The ongoing trial focuses on whether Ravid’s actions constitute illegal price coordination that harms market competition and consumers.