The market study of supermarkets announced today by the Government will be positive for Kiwi shoppers and grocery manufacturers, says the New Zealand Food & Grocery Council.

Chief Executive Katherine Rich says: “This review is not before time.

“The Government says it wants to make sure consumers are getting a fair deal at the checkout, and that there are indications competition in the sector has weakened. It is a fair question for the Government to ask in a small market where there are two dominant teams that control over 95% of mainstream supermarkets.

“New Zealand has the most concentrated market in terms of supermarket ownership in the world and with that privileged market position comes additional responsibilities and accountabilities.

“It will be most valuable for the review to make transparent the effects this market power and the impact of the array of costs, rebates, deductions, claims, discounts, deletion threats, shelf auctions and supermarket margin expectations have on final prices to the consumer and the health of the New Zealand supplier community.

“The Food & Grocery Council will participate fully with the Commerce Commission’s study.”

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