Supermarket duopoly on notice as Government targets high food prices, considers ‘structural separation’ of Foodstuffs, Woolworths

Finance Minister Nicola Willis announced a possible break-up of the supermarket duopoly to improve competition. The Government is considering a “structural separation” of Foodstuffs and Woolworths to foster genuine competition. Grocery industry experts and groups welcomed the move, highlighting the need for lower food prices.

The Government is not waiting around for New Zealand’s supermarket duopoly to improve on its own, threatening a possible break-up of the two dominant forces . Finance Minister Nicola Willis said she was not satisfied with the status quo and was now actively looking at options for a “structural separation” of the two big players in the grocery sector. “Significant action may be required to foster genuine competition .



.. I have commissioned specialist external advice on the ways in which the existing supermarket duopoly could be restructured to improve competition,” she said yesterday.

This includes a possible de-merger of existing brands – Foodstuffs (which owns Pak’nSave, New World and Four Square) and Woolworths (Countdown, FreshChoice and SuperValue)..