Member Matters
New Zealand Grocery Supply Code update
19 June 2025
The New Zealand Commerce Commission has recently published the Review of the Grocery Supply Code Draft Report, Decisions and Reasons.
The Grocery Supply Code review has identified ten recommendations, including:
- Obligation to offer to vary existing agreement so they are consistent with the code – transition period
- Unilateral variations – retailers to maintain records and provide to the Commission on request
- Transport and logistics services – guidance in relation to requirements for crates
- Payments to suppliers – supplier is able to obtain an itemised summary of payments and set-offs
- Payments for wastage – no longer allowing payments for wastage once products are in the retailers effective control
- Payments as a condition of being a supplier – retailers to keep records in relation to this provision and make them available to the Commission on request
- Payments for a retailer business activity – no longer allow for the payments to include merchandising and the transport of goods within the retail business i.e. between distribution centres or to store
- Funding promotions – retailers to keep records in relation t the use of this provision and make them available to the Commission on request
- Funded promotions – retailers to pay suppliers the difference in price for any products bought from supplier at the promotions price but not sold to the consumer at that price
- Unduly hindering or obstructing supply to competitors – re-wording the clause
- New clause prohibiting retaliation – similar to the Australian Food and Grocery Code of Conduct
The Wholesale Supply Inquiry Preliminary Findings Paper was released at the same time, setting out the preliminary findings from the inquiry into the wholesale supply of groceries in New Zealand and the difficulty faced by retailers seeking to compete with Foodstuffs (North and South Island) and Woolworths in trying to cost- effectively buy groceries for subsequent resale.
The Commerce Commission invites interested parties to submit their views on either report by 5pm Friday 18 July 2025. Submission documents can be emailed to grocery.regulation@comcom.govt.nz
