Grocery Commissioner's Warning to FSNI - My Reaction

The Grocery Commissioner’s slapping of a warning against Foodstuffs North Island for what can only be described as contemptuous treatment of a supplier is progress to a point. But it’s yet another reminder that the core problem of market failure can be resolved only by the government directing a breakup of the supermarket duopoly which is causing huge harm to consumers as well as grocery suppliers.

History has shown that only structural change will remedy the problem of excessive concentration of market power. That was shown clearly with Telecom’s dominance in the 2000s where lukewarm attempts to tinker around the edges were not resolved until both the National and Labour governments found the political courage to take decisive action to address the core problem - market failure.

Our supermarket duopoly have captured practically our country’s entire food supply chain. They make critical decisions about what our national diet will comprise, which producers will be permitted to supply it, how much the suppliers will be paid, and how much consumers will be charged each day.

Duopolies don’t work for consumers. Capitalism needs competition to succeed.

Only a breakup, probably an enforced structural split of wholesale from retail functions, can restore the diverse and competitive grocery market we once enjoyed. This has been festering for years - if the major political parties are serious about addressing our cost of living crisis its high time they came up with decisive plans.

Meanwhile I predict that the Foodstuffs Category Manager at the centre of this will receive a public reprimand from their bosses, followed by a substantial bonus behind the scenes once the heat has gone away.