The Government has announced that former NZFGC (New Zealand Food And Grocery Council) Chair Pierre van Heerden will be the inaugural Grocery Commissioner.
He starts in the Commerce Commission-based position this week and joins their Board.
Pierre has some 40 years of experience across the FMCG sector, including as Executive General Manager at Sanitarium Health and Wellbeing New Zealand for ten years and managing Farrah's Breads and Mojo Coffee.
He was NZFGC Chair from 2012 to 2016, and before that was Co-Vice-Chair.
NZFGC Raewyn Bleakley said that the New Zealand Food and Grocery Council welcomes the appointment of former grocery sector leader Pierre van Heerden as New Zealand's inaugural Grocery Commissioner.
"The appointment of the Grocery Commissioner is a momentous day for the sector and the wider retail environment. By holding supermarkets to account, the Commissioner will help make a meaningful difference to competition and behaviour that shoppers and the sector so desperately want to see," said Bleakley.
"As a former long-time executive in the FMCG sector, including leading Sanitarium Health and Wellbeing and other companies, and being Chair of the New Zealand Food and Grocery Council, Pierre van Heerden will bring a deep understanding of the sector to this vital role."
Bleakley continued that establishing the Commissioner was a sensible approach to ensure necessary change happens, adding that the Government signalled this move very early on in its response to the Commerce Commission's market report, showing just how serious it was about what's been happening across the supermarket sector, both from a shopper and a supplier point of view.
The NZFGC congratulate Minister Webb for following through on the Government's determination to establish a Commissioner and for him and the Ministry of Business, Innovation and Employment officials for delivering a new Act and consulting on the draft Grocery Code of Conduct at such a pace. The NZFGC looks forward to the Code being in place before the election.
Having the Commissioner inside the Commission is an ideal move because the Commission has a wealth of information on economic and competition regulation, fair trading, and consumer protection, as well as a deep understanding of the sector, thanks to its work on the market study. The NZFGC commend Commission Chair Dr John Small for enabling this.
Working with a robust and comprehensive Grocery Code of Conduct, the NZFGC also looked forward to the Commissioner issuing guidance on aspects such as the application of the reasonable faith provisions, operation of the grace period provisions during the transition, and arrangements around the grocery supply agreements.
Bleakley stated that this was a giant step toward a better and fairer grocery sector that would benefit both consumers and suppliers.
"The NZFGC looks forward to working with Mr van Heerden and his team, and retailers, to help deliver consumers optimum choice and price."
The Commerce Commission welcomed the appointment of the Grocery Commissioner, Pierre van Heerden, who will take up his role from the 14th of July onwards.
Commerce Commission Chair John Small said that van Heerden brings vast experience and knowledge about the grocery sector to this role.
"He is passionate about being a champion for Kiwi consumers – I know he sees the Grocery Industry Competition Act as a once-in-a-generation opportunity to level the playing field in the grocery sector. It will support more retailers to enter the market and promote stronger competition with the regulated grocery retailers on price, quality, range of products and convenience," said Small.
The Grocery Industry Competition Act designates Foodstuffs North Island, South Island, and Woolworths New Zealand as regulated grocery retailers (RGRs). It requires them to consider requests from other retailers for wholesale supply in good faith and follow the Grocery Supply Code in their dealings with suppliers. These changes are designed to bring more competition to the sector and transparency to agreements between the RGRs and suppliers, benefitting New Zealand consumers over the long term.
Small continued that the scrutiny on this $22 billion sector since the Commission's Market Study had already delivered positive changes.
The RGRs have worked constructively to relinquish restrictive lease covenants that posed a considerable obstacle to other retailers developing or expanding their grocery offerings to consumers.
Foodstuffs and Woolworths New Zealand have also quickly established the wholesale access schemes required by the Act and are taking orders to provide wholesale supplies to other retailers.
"Pierre has deep knowledge of the grocery sector and over 25 years of experience in the supplier side and working with retailers. He is the right person to lead grocery regulation and build on these early, positive developments. He is passionate about delivering a long-lasting and sustainable shift to a grocery sector where New Zealanders enjoy the benefits of retailers competing hard and innovating to attract and retain customers."
