New Zealand First is announcing an election policy to end the supermarket duopoly, aiming to increase competition, support Kiwi suppliers, and lower prices for consumers.
For an extended period, Woolworths and Foodstuffs have controlled more than 80 per cent of the grocery market. The Commerce Commission has previously found these companies earning around $1 million a day in excess profits.
The impact is being felt across the supply chain. A grower recently received 60c per kg of peas, while retail prices reached up to $5.79 per kg. The current system is also linked to job losses and uncertainty for producers such as McCain Foods and Heinz Wattie's, affecting producers, workers, and consumers.
Breaking up the supermarket duopoly
New Zealand First proposes legislation to restructure Foodstuffs into two nationwide cooperatives based on brand. One would cover New World and Four Square, and the other Pak'nSave, placing both in direct competition with Woolworths New Zealand.
Stronger powers for regulators
The policy includes increased enforcement powers for the Commerce Commission, with higher penalties for breaches. Proposed fines could reach up to $10 million, three times the gain, or 10 per cent of turnover.
The role of the Groceries Commissioner, established in 2023, would also be expanded. The position would gain authority to investigate, make binding decisions, and impose penalties.
Fixing the farm-to-shelf pathway
The proposal addresses control over market access, particularly how products reach supermarket shelves. A new framework under the Commerce Act 1986 would allow targeted action to address competition issues without extended legislative delays.
The policy aims to increase competition, improve supplier access, and influence pricing outcomes across the grocery sector.
For more information:
New Zealand First
Email: [email protected]
www.nzfirst.nz
