A majority of New Zealand grocery suppliers face challenges when dealing with supermarkets and believe they engage in anti-competitive behaviour, new research shows.
Foodstuffs North Island (FSNI), a group that owns retail franchises Four Square, New World and PAK’nSAVE, was met with the highest dissatisfaction from suppliers, with more than 90% of those surveyed saying they had “challenges” while dealing with them.
The research was conducted in January as part of the New Zealand Commerce Commission’s probe into whether competition in the grocery sector is working well. It’s due to report on its findings in November.
One hundred and fifty-nine members of the New Zealand Food and Grocery Council (NZFGC) took part in the survey. Of those, 64% agreed or strongly agreed that “anti-competitive behaviour [from grocery retailers] exists in the New Zealand food and grocery industry.”
94% said they had “challenges” in their commercial dealings with FSNI.
New Zealand’s food and grocery industry is dominated by FSNI and Foodstuffs South Island (FSSI), which co-operate, and Woolworths New Zealand.
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