New Zealand First has announced an election policy to end the supermarket duopoly, break their stranglehold, back local suppliers, and deliver fairer prices at the checkout for Kiwi families.
For too long, New Zealanders have faced rising grocery bills while Woolworths and Foodstuffs control more than 80 percent of the grocery market.
The Commerce Commission has previously found that those supermarket giants earn around NZD one million a day in excess profits. Meanwhile, Kiwi families are choosing between heating and eating.
The massive imbalance is being felt across the supply chain, as recently, a grower received just 60c per kg of peas, while those same peas retail for as much as NZD 5.79.
The current system sees job losses and uncertainty hit food producers such as McCain Foods and Heinz Wattie's, it means less for producers, less for workers, and more pressure on families.
Breaking up the Supermarket Duopoly
New Zealand First will introduce legislation to reform the system and break up Foodstuffs into two nationwide cooperatives based on brand: one for New World and Four Square, and another for Pak’nSave - putting both in direct competition with Woolworths New Zealand.
Real competition means real pressure to lower prices, improve value, and treat suppliers fairly.
Stronger Powers for Commerce Commission and Grocery Commissioner
The policy will include tougher penalties, faster investigations, and real enforcement powers for the Commerce Commission - penalties for serious breaches will be lifted to match Australia, including fines of up to NZD ten million, three times the gain, or 10 percent of turnover.
The role of the current toothless Groceries Commissioner, belatedly established by Labour in 2023, will also be reformed, giving the position the proper powers to investigate, make binding decisions, and impose penalties directly - not just sit on the sidelines and give warnings.
Fixing the ‘Farm to Shelf’ Pathway
NZ First will also address the supermarket giants’ stranglehold over who gets access to the shelf and who doesn’t.
A new framework for industry rules will be introduced under the Commerce Act 1986, allowing targeted action to fix competition problems more quickly without waiting for lengthy legislative change. It will ensure Kiwi producers are no longer pushed out or squeezed off the shelf by a system that favours the biggest players.
"The days of easy profits and zero accountability for the supermarket giants need to end. Hardworking Kiwis need real action to tackle the high cost of supermarket food."
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