The managing director of Foodstuffs NZ says plans to break up the supermarkets - including one aimed squarely at his organisation - have a "populist" streak, saying they risk higher rather than lower food prices.
Most parties - aside from ACT - are heading into next month's general election with policies that could split up a grocery sector dominated by Foodstuffs and Woolworths.
Speaking to Q+A this morning, Chris Quin said he could not comment on the politics, "although, clearly, you know, there is a populist nature to a lot of this."
He said the proposals to break up the industry's scale would not lower the cost of food.
"In fact, they run a real risk of the opposite."
Quin said the plans had alarmed the owners of the co-operative's stores.
"That's why you've seen 530 families who own these stores be quite concerned and quite frightened and quite alarmed about what is proposed here."
He said uncertainty over the policies was weighing on investment decisions such as a $340 million warehouse expansion in Palmerston North announced two weeks ago.
Politicians have declared war on the supermarket duopoly this election. (Source: 1News)
"With all of these policies floating around now, you could forgive our board for going 'Should we be concerned about this?'"
Quin said store owners were losing sleep over the same question.
"Do I put more fridges in? Do I invest in the store or is something going to change?"
When asked if he had a better idea for lower food prices, he argued for a stronger economy and exchange rate, better regulation and permission to merge Foodstuffs' support operations.
Quin also argued the duopoly label overlooked a growing range of rivals, saying about 80% of households shopped outside Foodstuffs and Woolworths each week.
"There is a Chemist Warehouse, there's a Kai Co, there's Tai Ping, there's Pino Foods, there is this range of competitors that aren't included in the measures people talk about.
If elected, the party would force Foodstuffs and Woolworths to break up their retail and wholesale supply operations. (Source: 1News)
"The view of competition today is quite a traditional and old market view. When you walk out the door today and watch where people go shopping, and I drive around my suburb, you see dozens of options about where people can buy groceries," Quin suggested.
Land covenants?
Quin is one of 51 business leaders who signed an open letter to political parties raising concerns about the degree of intervention proposed in the economy. The letter also called for the removal of "rules that keep new competitors out".
Q+A host Simon Mercep asked the Foodstuffs boss whether that was a hypocritical position given the business's previous use of covenants.
In 2024, the High Court in Wellington fined Foodstuffs North Island $3.25 million for lodging land covenants intended to block rival supermarkets.
Quin said the covenants predated his 11 years in the industry.
If returned to govern, the party says it will divvy up grocery giant Foodstuffs – with Pak'nSave a separate entity. (Source: 1News)
"They were things that we stopped doing and then recognised we needed to remove from market. It was right to not have those. We accepted that they were against the spirit of competition from a different business time," he said.
"It was probably intentional then-10, 20 years ago, yes."
The Commerce Commission said Foodstuffs North Island had committed in 2021 to stop using restrictive covenants and had admitted the conduct at the earliest opportunity.
In his judgment, Justice Radich noted the company had not intended to breach the law and had never enforced the covenants.
For the full interview, watch the video above
Q+A with Jack Tame is made with the support of New Zealand On Air
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