NZ FGC CEO Katherine Rich

The New Zealand Food & Grocery Council has reacted to the proposal of a market study into supermarket prices, which was recently announced by Labour Leader Jacinda Ardern and her team.

NZ FGC CEO Katherine Rich comments: “From the perspective of food and grocery manufacturers in New Zealand, we agree. It will be positive for our industry, which – unfortunately for manufacturers – faces the most concentrated market in terms of supermarket ownership in the world.

“It would be valuable to make transparent the effects such market power and the impact of the array of costs, rebates, deductions, claims, discounts, shelf auctions and supermarket margin expectations have on final price.

“The Food & Grocery Council regularly deals with reports of additional demands being made at the store level. This announcement in itself should have an effect on some of the more questionable claims and demands being made of suppliers by stores that, from time to time, overstep the line between robust negotiation and bullying,” says Rich.

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