What the supermarket changes mean for small grocers and suppliers
Your rights under the Grocery Supply Code, how independent grocers can buy wholesale, how to report a problem, and what each party's plan could change.
What this guide covers
If you supply Foodstuffs or Woolworths, the Grocery Supply Code 2025 has applied to your deal since 1 May 2026, even if you signed before then. If something goes wrong, keep dated records and tell the Commerce Commission. You can report anonymously. Independent grocers can ask the big groups for wholesale supply, but few do.
Who this is for
Small food and grocery makers who sell to PAK'nSAVE, New World, Four Square, Woolworths or their sister stores. And independent grocers, dairies and small chains who need stock to sell.
General information, not legal, financial or investment advice. Check your own situation with a lawyer, accountant or the Commerce Commission.
Your rights under the Grocery Supply Code
The Code sets rules for how Foodstuffs North Island, Foodstuffs South Island and Woolworths New Zealand deal with grocery suppliers [1].
Its purpose includes fair conduct, banning unfair conduct, and clear and certain terms in supply agreements [1].
In force: the Grocery Supply Code 2025 came into force on 1 May 2026. It replaced the first Code from 28 September 2023 [1].
Old deals count: the Code applies to all supply agreements, including ones signed before it started [1].
Offers to change: the big groups had to offer to fix any part of an existing deal that broke the Code. You did not have to accept. If your deal was not updated, the Code still applies [1].
Read the plain version: the Commission publishes a factsheet on the Code and a separate factsheet for suppliers offered a new or changed deal (both May 2026) [1].
Why it matters
In the 2026 survey, 83% of suppliers who answered reported an issue with the big groups [2]. The survey ended before the revised Code began, so it cannot show whether the Code is working yet [2].
Keep a simple record
Use one row per event. Keep the original documents private.
Example record (made-up figures)
Date: 3 Feb. Issue: Promotion fee. Charge: $500. What was promised: A two-week special. Evidence: Invoice and sales extract. Reply: Waiting
Date: 17 Feb. Issue: Late payment. Charge: $0. What was promised: Paid in 20 days. Evidence: Remittance advice. Reply: Paid on day 34
Made-up example, excluding GST: invoice sales of $10,000, less $500 promotion funding and $200 of other charges, leaves $9,300 before your own costs. The charges are $700, or 7% of invoice sales. That is not profit and not a benchmark.
Ask your accountant how to treat these charges and GST.
Ask for the data you need
29% of suppliers in the 2026 survey reported trouble getting data and insights from the big groups [2]. Ask in writing, and be precise:
Products: which lines the promotion covered.
Dates: the exact start and end of the promotion.
Sales: units sold per week, before, during and after.
Money: every fee or discount you funded for it.
Deadline: the date you need the answer by.
The Code does not promise every one of these fields. Asking clearly still makes a fair answer easier.
How to report a problem
Commerce Commission: its information for suppliers page explains how to raise a concern. It links a secure anonymous reporting tool [3]. The Commission is a regulator. It is not your lawyer and cannot promise you a personal remedy.
Grocery dispute resolution: a separate scheme run by the New Zealand Dispute Resolution Centre [3][4]. Only suppliers and wholesale customers can bring a claim, and claims must generally be under $5 million. The supermarkets pay the mediator and adjudicator fees, but you pay your own legal and other costs [4]. Check the scheme rules before you apply.
A lawyer: for anything about your contract. Ask for a fixed quote before work starts.
If you run an independent grocery
The 2023 grocery law lets other retailers ask the big groups for wholesale supply [5].
Small so far: sales through the big groups' wholesale offers were about $22 million from July 2023 to August 2025 [5].
Customers: the big groups accepted 234 wholesale customers from July 2023 to December 2025 [5].
Who sells most: Woolworths made 78% of these wholesale sales, Foodstuffs North Island 21% and Foodstuffs South Island 1% [5].
What retailers told the Commission: some found wholesale useful while they grew. Many were unhappy with price, range, minimum orders and delivery terms [5].
No new rules yet: the Commission closed its wholesale inquiry on 7 July 2026 without recommending new regulation "at this stage". It says competition on wholesale price, range and access "remains weak" [6].
What may change
As at 9 November 2026: these are promises, not law
New Zealand voted on 7 November 2026. Official results are due on 27 November, and coalition talks follow [7]. Nothing below is law yet.
What each party's plan could mean for suppliers and independent grocers
Party: ACT. Plan: Faster consents for new supermarkets; accept overseas food labels [8]. What it could change for you: More possible buyers if new chains open. No break-up.
Party: Green. Plan: KiwiMart, a public chain of at least 120 stores; a ban on excessive prices [9]. What it could change for you: A new, publicly owned buyer.
Party: Labour. Plan: Run wholesale arms separately; a right for independents to buy from any wholesaler on fair terms; free Four Square-type stores from restraints of trade [10]. What it could change for you: Fairer wholesale terms for independent grocers.
Party: National. Plan: Split Foodstuffs into two nationwide chains by brand, if the Commission agrees after a six-month test [11]. What it could change for you: Two separate buyers instead of one Foodstuffs in each island.
Party: NZ First. Plan: Split Foodstuffs into two nationwide co-ops by law; higher penalties [12]. What it could change for you: Two separate buyers; stronger enforcement.
Party: Opportunity. Plan: Give the Commission power to force break-ups across the economy [13]. What it could change for you: Depends on what the Commission later decides.
Party: Te Pāti Māori. Plan: $100 million and land for Māori-owned supermarket chains [14]. What it could change for you: New, community-owned buyers.
See our plain guide to every party's policy for the detail and sources.
Get help
Free: the Commerce Commission's supplier pages, factsheets and anonymous reporting [1][3].
Disputes: the grocery dispute resolution scheme [4]. The supermarkets pay the mediator and adjudicator fees. Your own legal costs are yours.
Paid: a commercial lawyer for contract questions, and an accountant for charges and GST. Ask for a quote before you start.
Copy this prompt into an AI assistant
Help a small New Zealand grocery supplier organise records using only the facts provided. Use placeholders for private names and prices. Make columns for date, issue, agreement clause, charge, promise, evidence, business cost, reply and next question. Separate documented facts, opinions and missing information. Do not decide whether a law was broken. List questions for a lawyer and point to the Commerce Commission's current Grocery Supply Code guidance. Use NZ dollars and show the sums.
Remove names, prices and private details first. An AI cannot tell you whether the law was broken.
The steps
Find your current supply agreement and any offer to change it since May 2026.
List every charge and what you were promised for it.
Ask in writing for the sales data you need to check each promotion.
Keep a dated record of any problem and the reply.
Report a concern to the Commission, or check the dispute scheme, if it is not fixed.
Does the Grocery Supply Code apply to my old agreement?
Yes. The Commission says the Code applies to all grocery supply agreements, including ones made before it came into force.
When did the new Code start?
The Grocery Supply Code 2025 came into force on 1 May 2026.
Can I report a supermarket anonymously?
Yes. The Commerce Commission's information for suppliers page links a secure anonymous reporting tool.
Can an independent grocer buy wholesale from Foodstuffs or Woolworths?
Yes. The 2023 grocery law gives other retailers a way to ask for wholesale supply. Sales through it are still small, about $22 million from July 2023 to August 2025.
Sources, checked 9 November 2026
[1] Commerce Commission, Grocery Supply Code page and factsheets, checked 8 November 2026: https://www.comcom.govt.nz/regulated-industries/grocery/grocery-supply-code/
[2] Commerce Commission and Ipsos, Grocery Supplier Survey Report 2026 (PDF), pages 4 to 5 and 38 to 40, published 2 June 2026: https://www.comcom.govt.nz/assets/Uploads/Grocery-Supplier-Survey-Report-2026-2-June-2026.pdf
[3] Commerce Commission, information for suppliers, checked 8 November 2026: https://www.comcom.govt.nz/regulated-industries/grocery/information-for-suppliers/
[4] NZ Dispute Resolution Centre, Grocery Industry Dispute Resolution Scheme, checked 9 November 2026: https://nzdrc.co.nz/expertise/grocery-industry-dispute-resolution-scheme/
[5] Commerce Commission, Annual Grocery Report 2025 (PDF), printed pages 15 to 18, published 2 June 2026: https://www.comcom.govt.nz/assets/Uploads/Annual-Grocery-Report-2025-2-June-2026.pdf
[6] Commerce Commission, Wholesale Supply Inquiry FAQs (outcome), checked 8 November 2026: https://www.comcom.govt.nz/regulated-industries/grocery/wholesale-supply-inquiry-faqs/
[7] RNZ, 2026 election results in full (preliminary), 8 November 2026: https://www.rnz.co.nz/news/election-2026-results
[8] 1News, ACT reveals supermarkets policy, 28 September 2026: https://www.1news.co.nz/2026/09/28/act-reveals-supermarkets-policy-decries-insane-break-up-proposals/
[9] Green Party, Affordable food for all of us (policy PDF), September 2026: https://www.greens.org.nz/affordable_food_full_policy
[10] 1News, It's breakup season: Labour, National clash on tearing up grocery duopoly, 20 September 2026: https://www.1news.co.nz/2026/09/20/labour-proposes-splitting-foodstuffs-woolworths-from-wholesale-arms/
[11] National Party, National to pursue separation of Foodstuffs, 16 September 2026: https://www.national.org.nz/news/260916-nicolawillis
[12] NZ First, policy release via Scoop, 19 April 2026: https://www.scoop.co.nz/stories/PA2604/S00094/nz-first-campaign-policy-announcement-nz-first-will-break-up-the-supermarket-duopoly-bring-food-prices-down-for-kiwis.htm
[13] Opportunity Party, Bottom lines, checked 9 November 2026: https://www.opportunity.org.nz/bottom_lines
[14] Consumer NZ, Election 2026: how the main parties plan to improve the grocery sector, 1 October 2026: https://www.consumer.org.nz/shopping/supermarkets/election-2026-how-the-main-parties-plan-to-improve-the-grocery-sector