Consumer NZ welcomes today’s announcement on supermarket wholesale access from Commerce and Consumer Affairs Minister
David Clark.
Earlier this year, the not-for-profit petitioned the Government to go further than the Commerce Commission’s
recommendations and look into regulating access to wholesale supply. Consumer’s petition racked up more than 78,000
signatures.
“Although the devil will be in the detail, wholesale access is the key to healthy competition in the grocery sector,”
Consumer NZ Chief Executive Jon Duffy said.
“It will remain difficult for grocery retailers outside the duopoly to set up or expand if they can’t access a decent
range of wholesale groceries at reasonable prices. This is the logical next step in the Government’s work plan to fix
the broken supermarket sector.
“We are pleased the Government has recognised that relying on the supermarket giants to play fair was never going to
work,” he said. “It’s clearly not in the commercial interests of the duopoly to voluntarily open up their wholesale
supply to competitors.
“New Zealand consumers are fed up with excessive profits in the supermarket sector – they deserve better. Without a
genuine regulatory threat from the Government, the status quo will continue. Today’s announcement sends a clear message
to the duopoly: The party is over and now it’s time to start playing fair.”
Nationally representative research from Consumer found that trust in the major supermarkets has plummeted over the past
12 months. In June 2021, 17% of New Zealanders said they did not trust the supermarkets. Fast forward to July 2022 and
lack of trust in the industry has reached 40%.
Consumer’s Sentiment Tracker found that New Zealanders’ concerns about the cost of living has risen sharply over the
past year, with food prices a key component. At present, the cost of food ranks second highest on a list of financial
concerns, behind housing payments. Last year, food ranked as the eighth highest concern, trailling other household
outgoings such as healthcare and personal debt.
“We understand there are a host of factors driving the current cost-of-living crisis and that many of these are beyond
the direct control of businesses,” Duffy said. “At the same time, we believe cost-of-living pressures must be borne
evenly and fairly between consumers and the big businesses, such as supermarkets, that we all rely on.
“New Zealanders should be able to trust that they’re paying a fair and competitive price at the supermarket. While
factors such as transportation costs, the international situation and Covid-related delays contribute to high food
costs, the lack of competition in the supermarket sector is also a key contributor,” he said.
“The Commerce Commission found that supermarkets are earning more than $1 million in excess profits a day. How is that
fair, as many people struggle to feed their whānau?
“Meaningful change in the supermarket industry won’t happen overnight, but there are clear signals from the Government
that it will hold the duopoly to account and make changes that create a framework for a competitive and healthy
supermarket sector. This has our strong support.”