Sunday, May 26, 2024

Consultation off shelf for grocery supply code of conduct

The Ministry of Business, Innovation and Employment (MBIE) is seeking feedback on a new mandatory Code of Conduct between major grocery retailers and suppliers.

In May 2022, the Government announced a Code of Conduct as part of the wider Grocery Sector reforms looking to address competition, as recommended by the Commerce Commission’s third market study into the retail grocery sector.

In April this year, Cabinet agreed to a set of protections for agreements between grocery retailers and suppliers to be included in the draft Grocery Supply Code of Conduct.

The draft Grocery Code of Conduct is intended to address the imbalance in negotiating positions between major grocery retailers and their suppliers. The intent of the Code is to constrain major retailers from pushing extra costs and risks onto suppliers, while improving the transparency of the trading relationship.

“By improving retail conditions for suppliers, the Code of Conduct will also improve suppliers’ ability to innovate and invest in grocery products. Over time, it is expected that this will improve the quality and range of groceries available to consumers,” the Ministry said in a statement.

The consultation will include information on the decisions the Government has made to date, and allows key stakeholders and interested parties to provide input on the detailed requirements before final decisions are made. This follows an initial consultation on the detailed design of the Code of Conduct undertaken by MBIE in July 2022.

Interested parties are encouraged to provide feedback to ensure the final details are fit for purpose. A discussion document has been published on MBIE’s website. Submitters are welcome to address any sections in the consultation, and do not have to complete all sections.

Submissions close 5pm on Wednesday 5 July 2023.

Further information is available on MBIE’s website:

Draft Grocery Supply Code of Conduct.

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