Francesca Rudkin: The great supermarket talkathon continues

A lovely tease yesterday from the government, aimed at those of us still hurting at the cost of putting food in the supermarket trolley.  

The government wants more competition in the grocery sector.  

It was a nicely timed message – despite all the big picture talk of foreign investment, a new economic ministry, and a focus on growth, growth, growth, the government has not forgotten that most Kiwis are dealing with simpler day to day challenges, like affording groceries.  

But the announcement by Finance and Economic Growth Minister Nicola Willis at the University of Waikato Economics Forum in Hamilton was very much connected to the Government’s economic growth plan.  

And look that’s not a bad thing. Got to love a government with focus, or at least messaging focus. The issue is – there isn’t really a plan here at all.  

The Government's has said it’s receptive to cracking down on pricing and helping new entrants access land and properties. Willis said that if a new competitor presented a proposal to her she would be willing to “do a deal”, and give them the VIP treatment through a bespoke arrangement.  

There was a mention of existing proposals – that Willis knew of companies possibly interested, but for commercial reasons she wouldn’t disclose who they were. 

Who knows how serious these contenders are? Do they have a well considered proposal, or was it a conversation in a Koru lounge? It all sounds quite hypothetical. 

Those with knowledge of the grocery industry will tell you that the only way a third party could make a go of it here, they would need roughly 140 outlets, set up a billion-dollar supply chain, and would require the big players to be broken up for any competition on price or sustainability. It’s a lot. 

Willis says she’s up for the fight, but if forced divestment of some properties by incumbents is needed it will be some scrap - one the previous government did not push ahead with.  

So I'm not entirely sure what this tease has accomplished other than some friendly headlines, a gentle poke at Foodstuffs and Woolworths, and to continue the Kiwi distant dream of lower prices if a third party entered the New Zealand supermarket scene. 

So, the great supermarket talkathon continues.... 

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Episode Transcript

Speaker 1 (00:00):
A lovely teas yesterday from the government aimed at those
of us still hurting at the cost of putting food
in the supermarket trolley. The government wants more competition in
the grocery sector. It was a nicely timed message. Despite
all the big picture talk of foreign investment in a
new economic ministry and a focus on growth, growth, growth,
the government has not forgotten that most key wes are

(00:21):
dealing with simpler day to day challenges like affording groceries.
About the announcement by Financing Economic Growth, Minister Nikola Willis
at the University of Waikato Economics Forum in Hamilton was
very much connected to the government's economic growth plan and
look that's not a bad thing. Got to love a
government with focus, or at least messaging focus. The issue

(00:42):
is there isn't really a plan here at all. The
government has set its receptive to cracking down on pricing
and helping you entrants access land and properties. Willis said
that if the new competitor presented a proposal to her,
she would be willing to do a deal give them
the VIP treatment through a bespoke arrangement. There was mention
of existing proposals that Willis knew of companies possibly interested,

(01:04):
but for commercial reasons, she wouldn't disclose who they were.
Who knows how serious these contenders are. Do they have
a well considered proposal or was it a conversation in
a corry lounge. It all sounds quite hypothetical. Those with
knowledge of the grocery industry will tell you that the
only way a third party could make a go of
it here they would need roughly one hundred and forty outlets,

(01:25):
set up a billion dollar supply chain, and would require
the big players to be broken up for any competition
on price or sustainability. It is a lot. Willis says
she's up for the fight, but a forced divestment of
some properties by incumbents is needed. It will be some
scrap one the previous government did not push ahead with.
So I'm not entirely sure what this teas has accomplished

(01:48):
other than some friendly headlines, A gentle poke at Foodstuffs
and will Worths and to continue the keyweed distant dream
of lower prices if a third party entered the New
Zealand super market scene. So the Great Supermarket Talkathon continues.
For more from early edition with Ryan Bridge listen live

(02:09):
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