Milk price-fixing leads to £6.1m fine for Wiseman Dairies

The OFT announced this morning that Sainsbury’s, Asda and several milk producers had come clean over their involvement and would get a total fine of £116m.

Wiseman said: “The matters being reviewed by the OFT relate to Retail Price Initiatives which resulted in additional monies being returned to farmers. Wiseman's support for the 2003 Retail Price Initiative was driven by a wish to provide support for its farmer suppliers.

“All monies paid to Wiseman following the Retail Price Initiatives were returned to farmers and no profit was generated by Wiseman from such initiatives.”

The maximum fine it faced was £60.5m, or 10% of its turnover at the time.

The company added: “Following extensive discussions with the OFT, Wiseman has decided to remove the uncertainty of the investigation by reaching a settlement with the OFT.

“As part of this settlement Wiseman has agreed to pay a sum of £6.1 million and as a result the OFT has resolved its investigation in relation to Wiseman, on condition it continues to provide full co-operation to the OFT.”

Chairman Alan Wiseman said: “The intention of the Retail Price Initiatives was to provide support for farmers at a time of crisis, and every penny of additional revenues paid to Wiseman was passed directly to our suppliers.

“Whilst we are disappointed with the outcome of the investigation, this agreement removes a long shadow hanging over the company, and we now look forward to the Group’s continued growth and success.”