21st October 2021 ComCom / Foodstuffs
FSSI’s boss blames the grocery market review process for having “significantly damaged a large number” of supplier and retailer relationships.
George Weston Foods has made a change to its Commerce Commission application to acquire 100% of the share of pastry and pie rival, Dad’s Pies.
The Commerce Commission has published a statement of preliminary issues relating to the New Zealand Tegel Growers Association application to collectively negotiate conditions around its supply arrangement with Tegel Foods.
The new business would be a top three wholesale pie company in NZ but it wouldn’t weaken competition, says George Weston Foods.
Both firms manufacture and supply savoury pies and sausage rolls in NZ.
The supermarket group also suggests changes to planning laws and the appointment of a grocery ombudsman with oversight of the $22bn sector.
Food firms want wide stakeholder buy-in to a code that provides a framework for behaviour and confidence for investment decisions.
CEO Chris Quin says the co-op will make changes but he disputes ComCom’s estimate of the supermarket group’s profitability.
The Commerce Commission has warned paper packaging company Glopac New Zealand for making misleading claims about the ability to recycle its hot drink cups.
First Union has highlighted centralised wage bargaining “as a key tool to constrain excess supermarket profitability and secure decent work for everyone in the supply chain,” in its submission to the Commerce Commission’s market study into the grocery sector.
The Commerce Commission has reminded all businesses supplying essential services in the current nationwide Covid-19 lockdown of their obligations under the Commerce Act.
Fonterra’s calculation of the base milk price it will pay farmers in the 2020/21 dairy season is consistent with the Dairy Industry Restructuring Act (DIRA), says the Commerce Commission.
Foodstuffs disagrees with the Commerce Commission’s estimates of its profitability.
HortNZ will support “any move to ensure that growers get a better return on their investment, so that they will continue to invest in fruit and vegetable growing meaning New Zealanders can eat healthy, locally produced food”.
Separating NZ’s supermarket duopoly from wholesaler subsidiaries like Gilmours could help suppliers, says the Commerce Commission’s grocery sector draft report.
Report reflects imbalance of power in sector which has allowed retailers to push excess costs, risks, and uncertainty onto suppliers, FCG says.
A third major player could be introduced to compete with Foodstuffs and Countdown, according to the strongest draft report recommendation.
The introduction of a new, lower priced competitor into the grocery market would see shoppers abandon stalwarts Countdown and Foodstuffs in droves, according to one industry expert.
The Commerce Commission backs a mandatory industry code of conduct and allowing suppliers to bargain collectively with supermarkets.
NZFGC boss Katherine Rich repeats calls for a mandatory Grocery Code of Conduct on the eve of the draft ComCom report being released.
The Commerce Commission has updated its approach paper outlining the framework it applies when reviewing both how Fonterra sets its annual base milk price and the Milk Price Manual used to set the base milk price.
The supermarket giant says it is “surprised” at the allegations because it values its suppliers.
The government’s probe into the $21bn grocery sector heats up as rivals open fire in cross-submissions.