During range reviews, supermarkets decide which products to continue stocking and may delist some products. The updated Grocery Supply Code, effective May 1, gives suppliers more rights to challenge delisting decisions and promotes transparency in dealings with major supermarkets.
Dr. Alice Hume, head of groceries at the Commerce Commission, highlighted that Woolworths, Foodstuffs North Island, and Foodstuffs South Island collectively control 82% of the grocery market in New Zealand. She emphasized that losing access to supermarket shelves could be detrimental to smaller suppliers.
The Commission identified instances where Woolworths was at risk of breaching the Grocery Supply Code and issued a warning. Woolworths has since updated its processes to comply with the code.
Woolworths stated, “We take our obligations under the Grocery Supply Code seriously and strive to maintain strong supplier relationships. We address any potential issues promptly and have updated our processes based on the Commission’s feedback.”
Leveling the Playing Field
Dr. Hume emphasized the importance of the updated code in creating a fairer environment for smaller suppliers. The Commission remains focused on range reviews and encourages suppliers to report any concerns about delisting or unfair treatment.
Suppliers can contact the Commission directly or use the anonymous reporting tool on the website.
