NZ watchdog gives Woolworths warning over delistings

New Zealand's contention watchdog has warned nutrient retailer Woolworths implicit its processes to delist products.

In a connection contiguous (22 January), the Commerce Commission said delistings by Woolworths' New Zealand limb could beryllium a “likely breach” of the Grocery Industry Competition Act.

The Commerce Commission said determination had been an appraisal of “major” supermarkets’ scope reappraisal processes to cheque compliance with the Grocery Supply Code.

The regulator said during its reappraisal it identified and investigated “instances” wherever it considered Woolworths was “at hazard of not gathering their obligations”.

However, it stressed that lone a tribunal tin find whether a breach has occurred.

Reacting to the Commerce Commission’s findings, a spokesperson for Woolworths told Just Food: “We instrumentality our obligations nether the Grocery Supply Code earnestly and we are arrogant of the beardown relationships we person with our suppliers.

“We enactment hard to marque definite we comply with each of our obligations nether the code. If we go alert of imaginable issues, we hole them arsenic rapidly arsenic we can.

“We reviewed and updated each of our templates erstwhile the codification archetypal came into force, but the Commission expressed concerns astir whether 1 of our template letters included circumstantial connection that was required nether the code.”

The spokesperson further said: “We afloat cooperated with the Commission’s enquiries and person updated our template missive successful airy of the Commission’s views.”

The Commerce Commission said Woolworths has updated its processes to conscionable its obligations.

Under the Grocery Supply Code, supermarkets successful New Zealand indispensable travel rules erstwhile moving scope reviews that find which products stay connected shelves.

An updated Grocery Supply Code is owed to travel into unit connected 1 May.

According to the Commerce Commission, the revised rules springiness suppliers “clearer rights” to situation delisting decisions and “greater transparency” successful dealings with the large chains.

A breach of the codification amounts to a breach of New Zealand's Grocery Industry Competition Act.

Alice Hume, caput of groceries astatine the Commerce Commission, highlighted the marketplace powerfulness of the country’s largest supermarket operators, noting Woolworths, Foodstuffs North Island and Foodstuffs South Island unneurotic power astir 82% of New Zealand’s market sector.

“Losing entree to specified a ample information of the marketplace tin efficaciously awesome the extremity of a smaller supplier,” she said.

“The anticipation of products being removed from shelves is simply a important value connected suppliers that tin reenforce the powerfulness imbalance betwixt large supermarkets and smaller suppliers.