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: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news