Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Foodstuffs' North Island cooperative to merge operations

Foodstuffs' North Island cooperative to merge operations

Feb. 7 (BusinessDesk) - Foodstuffs' Auckland and Wellington cooperatives are seeking to merge their operations in a bid to bring down costs in the face of growing competition.

The move will be put towards members for a vote in coming months after an extensive business study the respective cooperatives' boards, Foodstuffs said in an emailed statement. The deal comes after Foodstuffs, which runs the New World, Pak'n Save and Four Square stores, has moved towards greater integration of its marketing and product development, it said.

Foodstuffs Auckland managing director Murray Jordan will take the lead role of the merged entity, which will be called Foodstuffs North Island. Foodstuffs South Island isn't part of the deal.

"The merger … will help keep prices down through the benefits of common systems, faster decision making, reduced costs and other benefits," said Jordan.

Foodstuffs' North Island entities account for about 43 percent of annual supermarket sales and a merged unit would trump Woolworths-owned Progressive Enterprises, which operates the rival Countdown brand stores.

Former Fonterra chairman Henry van der Heyden and Pumpkin Patch chair Jane Freeman will join the board of the merged unit as independent directors. The merger is subject to court and regulatory approval.

Foodstuffs Wellington had to back down on a controversial plan to levy a 3 percent promotions rebate from all products sold in its stores after suppliers baulked at the extra cost.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news