The Commerce Commission is proposing to give grocery suppliers a leg up in their dealings with the supermarket giants.
The commission has proposed updates to the Grocery Supply Code, including stopping retailers charging suppliers for stocking shelves and requiring retailers to keep records on how they’re complying with certain parts of the code.
Night 'n Day general manager Matthew Lane says this crackdown comes with encouraging implications for the sector.
"What's most encouraging for us is that the CommComm's cracking down on the fact that other retailers are being charged more for their wholesale than what the supermarkets are actually retailing the same products for."
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Speaker 1 (00:00):
Onto another subject, The Commerce Commission fired another shot across
the supermarket youopoly bows. The ComCom says that the supermarkets
are charging suppliers for things like stocking shelves and this
has got to stop now. Matthew Lane is Night and
Day general manager. He's read the ComCom reporting is with us.
Speaker 2 (00:15):
Now, how math you afternoon? Here? Is?
Speaker 1 (00:18):
Is that what's going on and the supplies being charged
for stocking shelves.
Speaker 2 (00:23):
There is certainly a practice that does happen in the
surf market industry, but what's most encouraging for us is
that the comcoms cracking down on the fact that other
retailers are being charged more for their wholesale than what
are the surfermarkets are actually retailing the same products for?
Is it?
Speaker 1 (00:40):
Give me an example?
Speaker 2 (00:42):
So example is if we buy a bag of flour
wholesale oft them could be three dollars for us to
buy for them, it's three dollars to buy as well,
but then the supply gives them back another dollar, so
the effect of cost prices two dollars whereas ours is
three dollars.
Speaker 1 (00:58):
Why are they how does this rebate thing work? Why
would a supply give them a rebate.
Speaker 2 (01:03):
It's to target the investment into the players with the
major dominance. So given the fact they've got volume in
the position in the market, they end up being looked
after a bit more. But then also the surf markets
probably demand it to make sure they can't lose market
share to any other.
Speaker 1 (01:19):
Resail So does it give the serve the supply? It
gives them a rebate, maybe gives them prominence on the
shelf or something like that.
Speaker 2 (01:24):
Could be, or even just reduce the cost price versus
what everyone else can buy if for in the market.
Speaker 1 (01:29):
Okay, now what is the Commerce Commission going to do
about it? If this stuff doesn't stop?
Speaker 2 (01:35):
So they have sent a shot across the bower to
the supermarkets. At the moment it's acknowledged they receive five
billion dollars in these rebates. That investment hasn't passed on
to other retailers trying to source those products. The surf
markets were given a clear mandate set up wholesale. They
have set it up, but it's not competitive and unfortunately
(01:55):
it's probably cheaper for me to go with the shop
and trolley around pattern save and monitors to pa what.
Speaker 1 (02:00):
I'm trying to get to is that the Commers Comission's
doing nothing about it but talking right, it's just jaw boning.
How much of this jaw boning do we have to
sit through before they actually do something.
Speaker 2 (02:11):
Yeah, we're seeing a light to see action. If we
could take a sledge hammer to it rather than taking
it step by step, I think that would certainly create momentum.
Speaker 1 (02:19):
They've gone getting frustrated.
Speaker 2 (02:22):
Absolutely frustrating. The rules are high, but I guess when
the market's been this way for twenty five years, you've
probably become a bit more accustomed to it. Look as
the strongest signals we've had that change is coming. We're
trusting if that change is coming. But you know, I
think there's the strongest signals so far that change will come.
The bulls in the surfmarket court to do it voluntarily,
(02:44):
and if not, once again, the Comms Commission will step down.
Speaker 1 (02:47):
And when because we're getting signals that change is coming.
When that change comes, what does it look like.
Speaker 2 (02:53):
So they've been given twelve months to pass on all
those promotional discounts to other retailers, so that's in a
lot of their prices as well. They're also stating that
the supermarkets have to provide their private labels through the
whole salth so we can get access to the cheapest
sugar in the market. The brand of ones are more expensive,
so if we can get access to their home brands,
we can then pass that sugar.
Speaker 1 (03:13):
I think you must understanding my question, right. If we're
getting all of these signals that change is coming, and
the Commers, Commission all the government are going to implement change,
what does that change look like?
Speaker 2 (03:24):
The change looks like effectively lower cost to the contribute.
Speaker 1 (03:28):
But how do we get there?
Speaker 2 (03:31):
How do we get it? It's a good question. I
think the pathway is out there. I don't know how
we get there.
Speaker 1 (03:39):
This is what I'm starting to get really frustrated with this.
Are you not, like, how long have we been talking
about supermarkets? We were talking about supermarkets when Jacinda was
still in there, and we're still talking about supermarkets and
nothing's changed.
Speaker 2 (03:50):
Yeah, that is correct. So I've spent about four years
and we're still in a similar possession to what we
were when we embarked on it. So I do she
frustration certainly frustrated as well.
Speaker 1 (04:01):
Yeah, you're probably more frustrated than I am. Matthew, thank you.
I appreciate it. Matthew Lane, Night and Day General Manager.
I just worry, do you not worry? Well, I don't
worry that much, but I just I just think that
possibly the ComCom and the grocery Commissioner, and if Nikola
doesn't watch out, the Finance minister as well, are going
to turn into the boy who cried Wolf. You know
the ones who are like I'm yeah, you're get it,
or like the weak parent is like, don't do that,
(04:23):
or I'm going to take that away from you. Oh yeah, yeah,
don't do that. Don't do that, And all you get
is don't do that. I'm going to take it away
from you. But you never actually find out what the
punishment is. Feel like we're in that little holding pattern
at the moment.
Speaker 2 (04:33):
For more from Hither Duplessy Allen Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
Onto another subject, The Commerce Commission fired another shot across
the supermarket youopoly bows. The ComCom says that the supermarkets
are charging suppliers for things like stocking shelves and this
has got to stop now. Matthew Lane is Night and
Day general manager. He's read the ComCom reporting is with us.
Speaker 2 (00:15):
Now, how math you afternoon? Here? Is?
Speaker 1 (00:18):
Is that what's going on and the supplies being charged
for stocking shelves.
Speaker 2 (00:23):
There is certainly a practice that does happen in the
surf market industry, but what's most encouraging for us is
that the comcoms cracking down on the fact that other
retailers are being charged more for their wholesale than what
are the surfermarkets are actually retailing the same products for?
Is it?
Speaker 1 (00:40):
Give me an example?
Speaker 2 (00:42):
So example is if we buy a bag of flour
wholesale oft them could be three dollars for us to
buy for them, it's three dollars to buy as well,
but then the supply gives them back another dollar, so
the effect of cost prices two dollars whereas ours is
three dollars.
Speaker 1 (00:58):
Why are they how does this rebate thing work? Why
would a supply give them a rebate.
Speaker 2 (01:03):
It's to target the investment into the players with the
major dominance. So given the fact they've got volume in
the position in the market, they end up being looked
after a bit more. But then also the surf markets
probably demand it to make sure they can't lose market
share to any other.
Speaker 1 (01:19):
Resail So does it give the serve the supply? It
gives them a rebate, maybe gives them prominence on the
shelf or something like that.
Speaker 2 (01:24):
Could be, or even just reduce the cost price versus
what everyone else can buy if for in the market.
Speaker 1 (01:29):
Okay, now what is the Commerce Commission going to do
about it? If this stuff doesn't stop?
Speaker 2 (01:35):
So they have sent a shot across the bower to
the supermarkets. At the moment it's acknowledged they receive five
billion dollars in these rebates. That investment hasn't passed on
to other retailers trying to source those products. The surf
markets were given a clear mandate set up wholesale. They
have set it up, but it's not competitive and unfortunately
(01:55):
it's probably cheaper for me to go with the shop
and trolley around pattern save and monitors to pa what.
Speaker 1 (02:00):
I'm trying to get to is that the Commers Comission's
doing nothing about it but talking right, it's just jaw boning.
How much of this jaw boning do we have to
sit through before they actually do something.
Speaker 2 (02:11):
Yeah, we're seeing a light to see action. If we
could take a sledge hammer to it rather than taking
it step by step, I think that would certainly create momentum.
Speaker 1 (02:19):
They've gone getting frustrated.
Speaker 2 (02:22):
Absolutely frustrating. The rules are high, but I guess when
the market's been this way for twenty five years, you've
probably become a bit more accustomed to it. Look as
the strongest signals we've had that change is coming. We're
trusting if that change is coming. But you know, I
think there's the strongest signals so far that change will come.
The bulls in the surfmarket court to do it voluntarily,
(02:44):
and if not, once again, the Comms Commission will step down.
Speaker 1 (02:47):
And when because we're getting signals that change is coming.
When that change comes, what does it look like.
Speaker 2 (02:53):
So they've been given twelve months to pass on all
those promotional discounts to other retailers, so that's in a
lot of their prices as well. They're also stating that
the supermarkets have to provide their private labels through the
whole salth so we can get access to the cheapest
sugar in the market. The brand of ones are more expensive,
so if we can get access to their home brands,
we can then pass that sugar.
Speaker 1 (03:13):
I think you must understanding my question, right. If we're
getting all of these signals that change is coming, and
the Commers, Commission all the government are going to implement change,
what does that change look like?
Speaker 2 (03:24):
The change looks like effectively lower cost to the contribute.
Speaker 1 (03:28):
But how do we get there?
Speaker 2 (03:31):
How do we get it? It's a good question. I
think the pathway is out there. I don't know how
we get there.
Speaker 1 (03:39):
This is what I'm starting to get really frustrated with this.
Are you not, like, how long have we been talking
about supermarkets? We were talking about supermarkets when Jacinda was
still in there, and we're still talking about supermarkets and
nothing's changed.
Speaker 2 (03:50):
Yeah, that is correct. So I've spent about four years
and we're still in a similar possession to what we
were when we embarked on it. So I do she
frustration certainly frustrated as well.
Speaker 1 (04:01):
Yeah, you're probably more frustrated than I am. Matthew, thank you.
I appreciate it. Matthew Lane, Night and Day General Manager.
I just worry, do you not worry? Well, I don't
worry that much, but I just I just think that
possibly the ComCom and the grocery Commissioner, and if Nikola
doesn't watch out, the Finance minister as well, are going
to turn into the boy who cried Wolf. You know
the ones who are like I'm yeah, you're get it,
or like the weak parent is like, don't do that,
(04:23):
or I'm going to take that away from you. Oh yeah, yeah,
don't do that. Don't do that, And all you get
is don't do that. I'm going to take it away
from you. But you never actually find out what the
punishment is. Feel like we're in that little holding pattern
at the moment.
Speaker 2 (04:33):
For more from Hither Duplessy Allen Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
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