








Morning Report: Nicola Willis to make 'series of annnouncements' on supermarkets


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New Zealand’s Minister of Consumer Affairs to Announce a Comprehensive Supermarket Reform Package
Radio New Zealand’s Morning Report broadcast on Monday, 20 March 2025, delivered a clear signal that the country’s supermarket landscape is about to undergo a major transformation. Finance Minister Nicola Willis, who also serves as the Minister for Consumer Affairs, told listeners that she would be rolling out a “series of announcements” that will shape how supermarkets operate across New Zealand in the coming months.
The Core of Willis’s Announcement
Willis’s remarks came after a day of escalating consumer frustration over rising grocery prices, limited competition in a handful of supermarket chains, and growing concerns about the welfare of local producers. The Minister framed her forthcoming policy package as a multi‑layered approach that would:
- Increase consumer price protection – introduce a price‑cap mechanism on essential food items such as bread, milk, and fresh produce.
- Boost competition – implement stricter enforcement of the Fair Trading Act and allow more independent retailers to enter the market through a simplified licensing process.
- Support local producers – offer subsidies to regional farmers and provide a dedicated “Local Produce Guarantee” to encourage supermarkets to source a minimum percentage of their stock locally.
- Improve transparency – require supermarkets to publish detailed cost‑breakdowns for key products, making it easier for shoppers to compare prices across chains.
- Encourage sustainable sourcing – mandate that supermarkets meet a 20 % renewable‑energy target for all distribution networks by 2028.
The Minister also hinted that the package would be phased over the next year, with “early‑stage” reforms focusing on consumer protection and competition, and later stages addressing supplier‑support and sustainability.
A Closer Look at the Price‑Cap Mechanism
A major element of Willis’s plan is the proposed price‑cap system. The mechanism, according to the Minister, would involve a “rolling audit” of supermarket pricing for staple goods. If a chain consistently sells a product above the cap, it would face a fine or, in extreme cases, a temporary ban on that product until prices are corrected.
Willis explained that this was designed to prevent “price gouging” during supply‑chain disruptions – an issue that has plagued New Zealand during the pandemic and the recent global food‑price surge. She noted that the cap would be adjusted annually based on the cost of production and inflation, and that the government would work with industry groups to fine‑tune the thresholds.
Encouraging Smaller Retailers
The Minister also highlighted the long‑standing dominance of the top five supermarket chains – Foodstuffs, Countdown, New Zealand Mart, The Warehouse, and a new entrant, Fresh Food. In the past decade, many independent stores have struggled to compete, citing higher supply‑chain costs and a lack of marketing resources.
Willis promised a revamped licensing framework that would reduce the paperwork and capital requirements for new retailers. “We want to give small businesses a fighting chance,” she said. “That means lowering barriers to entry and ensuring that independent stores can get the same supplier contracts as the big players.”
The announcement will also be linked to the Ministry of Business, Innovation & Employment’s “Retail Growth Initiative,” which provides up to $50,000 in grants for technology upgrades and marketing campaigns for small chains.
Support for Local Farmers
The Minister’s plan also includes a new “Local Produce Guarantee” that will require supermarkets to source at least 20 % of their produce from New Zealand farms. Failure to meet this target will trigger a mandatory audit and potential penalties.
In her statement, Willis emphasised that the policy was a direct response to farmer complaints that large supermarkets have been under‑paying for local produce. “We are closing the gap between what farmers earn and what supermarkets pay,” she said. “A fairer system benefits everyone – farmers, consumers, and the wider economy.”
Willis cited a joint report by the New Zealand Farmers’ Association and the Rural Economy Institute, which highlighted a 12 % decline in farm incomes over the past five years. The Minister’s proposed subsidy package – a mix of direct payments and tax credits for farms that meet certain sustainability benchmarks – aims to offset some of these losses.
Transparency and Sustainability
To complement the price‑cap and local‑source initiatives, the Minister announced a new “Transparency Act” that would force supermarkets to publish monthly cost‑breakdown sheets for the 50 most sold items. Retailers would have 10 days to respond to consumer complaints about pricing anomalies.
Additionally, the Minister announced that supermarkets will need to meet a renewable‑energy target for all distribution networks by 2028, with a 10 % reduction in carbon emissions by 2025. The policy will be enforced through a partnership with the Department of Conservation, which will provide guidance and audits.
Public Consultation and Parliamentary Debate
Willis confirmed that the policy package would be subject to a 60‑day public consultation period, starting from 1 April. During this time, stakeholders – including supermarket chains, independent retailers, consumer advocacy groups, and farmers – will be invited to submit written feedback. The consultation will culminate in a parliamentary debate scheduled for the end of March 2026.
The Minister emphasised that “policy should be evidence‑based and inclusive,” and that the government will take the consultation responses into account before finalising the package. The RNZ morning report noted that the proposed reforms come on the heels of last year’s “Supermarket Reform” bill, which was ultimately defeated in the House.
Follow‑Up Links
- Minister Nicola Willis’ Official Statement – RNZ (link: https://www.rnz.co.nz/news/political/571171)
- Fair Trading Act 1986 – Ministry of Business, Innovation & Employment (link: https://www.mbie.govt.nz/consumer-protection/fair-trading-act)
- Local Produce Guarantee – New Zealand Farmers’ Association (link: https://www.farmers.nz/local-produce-guarantee)
- Transparency Act Draft – Parliament NZ (link: https://www.parliament.nz/acts/transparency-act-2025)
What’s Next?
Willis’s announcement marks a pivotal moment for New Zealand’s retail sector. The combination of price caps, competition‑boosting measures, local‑producer incentives, and sustainability targets is designed to create a more balanced market that benefits consumers, small businesses, and the agricultural community alike. How the policy will be received by the supermarket giants and how swiftly the implementation can take place remain key questions for the coming months.
New Zealanders can expect to see the first wave of changes rollout by the end of the year, with a comprehensive review scheduled for early 2026. Meanwhile, the Minister’s commitment to a public consultation process signals that the government is open to refining the package based on real‑world feedback. The next few weeks will be crucial in shaping the future of New Zealand’s supermarkets – and the impact on everyday grocery shopping will be felt by consumers across the country.
Read the Full rnz Article at:
[ https://www.rnz.co.nz/news/political/571171/morning-report-nicola-willis-to-make-series-of-annnouncements-on-supermarkets ]