Draft Grocery Supply Code of Conduct

Background

On 8 March 2022, the Commerce Commission published its final report on the market study into the retail grocery sector in New Zealand. The report found that competition within the sector is not working well for consumers and made several recommendations to improve outcomes.

One of the Commission’s recommendations was to introduce a mandatory Grocery Supply Code of Conduct (Code) to govern relationships between the major grocer retailers and their suppliers. On 30 May 2022, the Government announced that it would establish a Code, and on 6 July 2022, MBIE released a consultation paper titled New Zealand Grocery Code of Conduct which sought submissions on the content of the Code.

View the initial consultation on the Code (July 2022) and the submissions received:

Have your say: New Zealand Grocery Code of Conduct

Read further information on the Commission's market study into supermarkets

Related documents

Grocery Supply Code of Conduct Requirements – Cabinet paper and Regulatory Impact Analysis [PDF, 1.5 MB]

Grocery Supply Code of Conduct Requirements – Cabinet minute [PDF, 172 KB]

What is the Grocery Supply Code of Conduct?

The Commission identified in its final report that there is an imbalance in negotiating power between the major grocery retailers and their suppliers. This may impact suppliers’ ability to innovate and invest in new grocery products which may contribute to higher prices and more limited grocery offerings for consumers.

The Grocery Code of Conduct is intended to address the effects of this imbalance by constraining the ability of the major retailers to push costs and risks onto suppliers and by improving the transparency of the trading relationship.

The Grocery Supply Code of Conduct prescribes minimum conduct which major grocery retailers must adhere to when dealing with their suppliers. 

What this consultation sought feedback on

Following initial consultation on the Code in July 2022, this consultation sought feedback on a draft of the Code, before final decisions were made. 

Submissions received

We received 15 submissions on the draft Grocery Supply Code. We have not published submissions where requested by the submitter.

Submissions received on the draft Grocery Supply Code(external link)