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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news