Economy · In depth

Breaking up the supermarket duopoly

In depth — from NZ First’s policy document

NZ First would legislate to split Foodstuffs into two nationwide cooperatives by brand — New World and Four Square in one, Pak’nSave in the other — putting both in direct competition with Woolworths. Commerce Commission penalties would rise to match Australia’s, the Grocery Commissioner would gain power to investigate, make binding decisions and impose penalties, and a new industry-rules framework under the Commerce Act 1986 would allow faster targeted action on the path from farm to shelf.

Market share

Over 80%

Held between Woolworths and Foodstuffs

Excess profits

~$1m a day

A previous Commerce Commission finding

The split

Foodstuffs into two

New World and Four Square; Pak’nSave

Maximum penalty

$10m

Or three times the gain, or 10% of turnover

Grocery Commissioner

Binding decisions

Plus powers to investigate and penalise

The supply chain gap

60c to $5.79

A grower’s price per kg of peas against the shelf price

What the Commerce Commission would gain

Penalties lifted to match Australia — up to $10 million, three times the gain, or 10 percent of turnover
Faster investigations
Real enforcement powers for serious breaches
A new industry-rules framework under the Commerce Act 1986, allowing targeted action without waiting for new legislation

What the Grocery Commissioner would gain

Power to investigate
Power to make binding decisions
Power to impose penalties directly
In place of a role the document describes as sitting on the sidelines giving warnings

How it would work

Splitting Foodstuffs in two

Legislation would break Foodstuffs into two nationwide cooperatives along brand lines — one holding New World and Four Square, the other Pak’nSave — so that both compete directly with Woolworths New Zealand and with each other. The stated aim is real pressure to lower prices, improve value and treat suppliers fairly.

Penalties matched to Australia

Tougher penalties, faster investigations and real enforcement powers for the Commerce Commission, with fines for serious breaches lifted to Australian levels: up to $10 million, three times the gain made, or 10 percent of turnover.

A Grocery Commissioner with teeth

The document calls the current role toothless and would reform it to give the Commissioner power to investigate, make binding decisions and impose penalties directly, rather than issuing warnings.

Fixing the farm-to-shelf pathway

The argument is that controlling who gets shelf access means controlling the price. A new framework for industry rules under the Commerce Act 1986 would allow targeted action on competition problems without waiting for lengthy legislative change, with the stated aim of stopping New Zealand producers being squeezed off the shelf.

In their own words

“For too long, New Zealanders have faced rising grocery bills while Woolworths and Foodstuffs control more than 80 percent of the grocery market.”
Break up the Supermarket Duopoly · Opening statement of the problem

“recently a grower received just 60c per kg of peas, while those same peas retail for as much as $5.79”
Break up the Supermarket Duopoly · On the imbalance across the supply chain

“When they control the pathway from farm to shelf, they control the price.”
Break up the Supermarket Duopoly · Fixing the ‘Farm to Shelf’ Pathway

“The role of the current toothless Groceries Commissioner, belatedly established by Labour in 2023, will also be reformed giving the position the proper powers to investigate, make binding decisions, and impose penalties directly - not just sit on the sidelines and give warnings.”
Break up the Supermarket Duopoly · Stronger Powers for Commerce Commission and Grocery Commissioner

What the document doesn’t settle

Points the document defers or leaves undefined. These are gaps in the document, not criticisms of the policy.

Foodstuffs is a cooperative owned by its member grocers, and the document does not describe how legislation would divide it or what happens to those members’ ownership.
No timeline or cost is given, and no view on whether compensation would arise.
Nothing says whether the two new cooperatives would be barred from re-merging or from coordinating on price.
The $1 million a day in excess profits is attributed to a previous Commerce Commission finding without a date or report named.
The pea price comparison gives no date, region, or account of what happens between the grower and the shelf.
What the new industry-rules framework would cover, and who would write the rules, is not stated.

Summarised from Break up the Supermarket Duopoly, published by New Zealand First. Read 2026-08-16.

Read the full document

Back to NZ First on Economy

NZ First on Economy

Economy · In depth

Breaking up the supermarket duopoly

In depth — from NZ First’s policy document

Market share

Over 80%

Held between Woolworths and Foodstuffs

Excess profits

~$1m a day

A previous Commerce Commission finding

The split

Foodstuffs into two

New World and Four Square; Pak’nSave

Maximum penalty

$10m

Or three times the gain, or 10% of turnover

Grocery Commissioner

Binding decisions

Plus powers to investigate and penalise

The supply chain gap

60c to $5.79

A grower’s price per kg of peas against the shelf price

What the Commerce Commission would gain

Penalties lifted to match Australia — up to $10 million, three times the gain, or 10 percent of turnover
Faster investigations
Real enforcement powers for serious breaches
A new industry-rules framework under the Commerce Act 1986, allowing targeted action without waiting for new legislation

What the Grocery Commissioner would gain

Power to investigate
Power to make binding decisions
Power to impose penalties directly
In place of a role the document describes as sitting on the sidelines giving warnings

How it would work

Splitting Foodstuffs in two

Penalties matched to Australia

A Grocery Commissioner with teeth

The document calls the current role toothless and would reform it to give the Commissioner power to investigate, make binding decisions and impose penalties directly, rather than issuing warnings.

Fixing the farm-to-shelf pathway

In their own words

“For too long, New Zealanders have faced rising grocery bills while Woolworths and Foodstuffs control more than 80 percent of the grocery market.”
Break up the Supermarket Duopoly · Opening statement of the problem

“recently a grower received just 60c per kg of peas, while those same peas retail for as much as $5.79”
Break up the Supermarket Duopoly · On the imbalance across the supply chain

“When they control the pathway from farm to shelf, they control the price.”
Break up the Supermarket Duopoly · Fixing the ‘Farm to Shelf’ Pathway

“The role of the current toothless Groceries Commissioner, belatedly established by Labour in 2023, will also be reformed giving the position the proper powers to investigate, make binding decisions, and impose penalties directly - not just sit on the sidelines and give warnings.”
Break up the Supermarket Duopoly · Stronger Powers for Commerce Commission and Grocery Commissioner

What the document doesn’t settle

Points the document defers or leaves undefined. These are gaps in the document, not criticisms of the policy.

Foodstuffs is a cooperative owned by its member grocers, and the document does not describe how legislation would divide it or what happens to those members’ ownership.
No timeline or cost is given, and no view on whether compensation would arise.
Nothing says whether the two new cooperatives would be barred from re-merging or from coordinating on price.
The $1 million a day in excess profits is attributed to a previous Commerce Commission finding without a date or report named.
The pea price comparison gives no date, region, or account of what happens between the grower and the shelf.
What the new industry-rules framework would cover, and who would write the rules, is not stated.

Summarised from Break up the Supermarket Duopoly, published by New Zealand First. Read 2026-08-16.

Read the full document

Back to NZ First on Economy

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Breaking up the supermarket duopoly

How it would work

In their own words

What the document doesn’t settle

Breaking up the supermarket duopoly

How it would work

In their own words

What the document doesn’t settle

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