As part of its grocery responsibilities, the Commission is required to review the operation and effectiveness of the Grocery Supply Code.
The Grocery Supply Code sets out rules for the conduct of regulated grocery retailers (RGRs), Foodstuffs North Island, Foodstuffs South Island and Woolworths New Zealand when dealing with grocery suppliers.
The Grocery Supply Code was developed to address the imbalance in bargaining power between RGRs and their suppliers. Its purpose is to promote competition and efficiency in the grocery industry by:
- promoting fair conduct, and prohibiting unfair conduct
- promoting transparency and certainty about the terms of agreements
- contributing to a trading environment that supports competition, confident participants and a diverse range of suppliers in the grocery industry.
The Commerce Commission has now published the cross-submissions received on its Review of the Grocery Supply Code. A total of seven submissions were made:
- Three were anonymous submissions
- HortNZ was the only other industry association to submit alongside the NZ Food & Grocery Council.
- Foodstuffs North Island and South Island and Woolworths New Zealand also submitted, and both retailers expressed partial agreement with some of NZFGC’s positions.
The NZFGC’s submissions on the Code continued to advocate for practical guidance, transparency in retailer payments, and flexibility for suppliers to negotiate commercial arrangements that suit their business models.
It supported the addition of anti-retaliation provisions, reinforced suppliers’ rights to reject GSAs with unclear or non-compliant terms. It supported the proposed six-month transition and one-month GSA offer window, strongly recommending early engagement and clear guidance from the Commission.
The Grocery Industry Competition Act 2023 requires the Commission to complete its first review of the operation and effectiveness of the Code by the 28th of September 2025.
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