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

 

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:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news