Following the Governments response to the Commerce Commission's market study on the grocery retail sector, Foodstuffs emphasises its commitment to embracing the challenges this brings and providing what is best for consumers.
Foodstuffs NZ Managing Director Chris Quin has said the two co-operatives, Foodstuffs North Island and Foodstuffs South Island, are already implementing procedures to ensure transparency.
“The market study showed that we can do more to remove the genuine barriers to market entry that are within our control and deliver better competition and value for customers, and we are committed to being transparent and accountable for New Zealanders every day as we work to do that.”
Foodstuffs have been actively involved in the Market Study process, working with the Commerce Commission and MBIE. It will continue to provide monthly financial updates to the Minister and public reporting on its Market Study Dashboard.
“We have also confirmed our support for the establishment of a specialist grocery regulator to monitor compliance with the Code and undertake effective enforcement action where appropriate. We understand that industry funding for the regulator will potentially be a part of the new regulatory framework, and we’re supportive of paying a fair proportion of the costs."
Foodstuffs North Island has already released restrictive covenants from 78 of 135 titles, and the South Island is currently in the process of doing the same.
Quin also supports the request for an active wholesale market in New Zealand. "We’re committed to being an active participant in wholesale, what is key now is understanding the demand landscape and ensuring that suppliers work with us and our wholesale customers to enable those customers to access wholesale groceries at competitive prices.”
Foodstuffs remain committed to its Price Rollback initiative, with customer savings already exceeding expectations and expected to sit at around $3 million. Of the products in the initiative, 80 percent were New Zealand made.
"These numbers are proof that this is not a marketing stunt, and that the rollback is delivering meaningful savings for customers at the checkout at a rate well above what we committed.”