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\nPhoto: Unsplash \/ Tara Clark\n<\/p>\n
The Commerce Commission says suppliers are scared to speak up about how they’re treated by supermarkets, so it’s running an anonymous survey to capture their experiences.<\/p>\n
The commission’s first survey, held in 2024, revealed suppliers felt they had limited ability to negotiate with the big players.<\/p>\n
Commerce Commission head of groceries Alice Hume told Nine to Noon power is tipped heavily in big retailers’ favour, with suppliers afraid to speak out.<\/p>\n
“If you think about the dominance of the supermarkets, they’ve got 80 percent of the market.<\/p>\n
“If you’re a supplier, and if you’re only dealing with one or two of them, that could be most of your business that’s on the line, so … it is a real valid concern for suppliers.”<\/p>\n
There were rules in place to address the power imbalance, Hume said.<\/p>\n
“But we still need to know from suppliers the things that they’re really concerned about.”<\/p>\n
The 2024 survey revealed concerns about “delisting”: how supermarkets decide whether to pull products from their shelves, Hume said.<\/p>\n
The Grocery Supply Code, which governs negotiations between suppliers and supermarkets, now forces supermarkets to be transparent about that, she said.<\/p>\n
Suppliers also have a right to appeal through an independent dispute resolution service, Hume said.<\/p>\n
The survey would help the Commerce Commission identify the biggest problems it needs to focus on.<\/p>\n
Woolworths and Foodstuffs have been approached for comment.<\/p>\n
Suppliers pressured, lack power – 2024 survey<\/p>\n
The 2024 Grocery Supplier Survey found some suppliers felt pressured into “unfavourable terms”.<\/p>\n
They felt there was a lack of transparency and communication about pricing, terms and decision making processes, and smaller suppliers felt “neglected or sidelined” in favour of larger players.<\/p>\n
Suppliers rated Woolworths most positively, followed by Foodstuffs North Island.<\/p>\n
“Foodstuffs North Island lags behind, with negative ratings outweighing positive across all measures,” the report said.<\/p>\n
It said suppliers appreciated suppliers’ responsiveness, and clear communication.<\/p>\n
This year’s survey closes on 17 March.<\/p>\n