March 14, 2004
WASHINGTON—Canadian authorities are investigating claims that Kraft is selling frozen self-rising crust pizzas at illegally low prices.
According to Dow Jones Newswires, McCain Foods Ltd., a frozen foods company based in Florenceville, New Brunswick, claims Kraft's "dumping" of low-price pies is suppressing market prices while costing it sales and profits.
Kraft Canada is a major importer of frozen self-rising crust pizza from the U.S., which it sells under the brand name Delissio.
The Canadian International Trade Tribunal found there was a reasonable indication of injury to Kraft's Canadian competitors. Whether actual dumping has occurred will be decided by April 1. Kraft could face import duties on its self-rising-crust products if found guilty; currently they're imported duty free.
Kraft has denied the allegations.
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