Grocery Supply Code 2025 FAQs

General questions and answers about the introduction of the Grocery Supply Code 2025, which came into force in May 2026.

The Commission also hosted a webinar on the changes to the Code, where attendees could ask questions. Responses to these questions are available to download below.

The Grocery Supply Codeopen_in_new (the Code) is a set of rules for interactions between regulated grocery retailers (RGRs), including Woolworths New Zealand, Foodstuffs North Island and Foodstuffs South Island, and grocery suppliers. The Code promotes fair conduct, and prohibits unfair conduct between RGRs and their suppliers. It prevents RGRs from using their significant bargaining power to force suppliers to accept unfavourable terms (such as costs and risks that retailers may be better placed to manage).

Read the Grocery Supply Code Factsheet for a quick overview.

The Commerce Commission was required to review the Grocery Supply Code within two years of it coming into force. This review was completed in 2025 and changes have been made to the Code to improve its operation and effectiveness.

Relevant documents, including submissions, cross-submissions, the final report and executive summary, are available in the Documents section on our webpage for the review of the Grocery Supply Code.

The updated Code came into force on 1 May 2026.  RGRs had until 1 June 2026 to offer new grocery supply agreements, or variations to existing agreements, that comply with the new Code.

These agreements must be in writing.

There is no timeframe by which suppliers must settle negotiations on grocery supply agreement (GSA) offers by RGRs. We encourage suppliers to read and understand what is being offered. If suppliers do not agree to amendments to terms, RGRs must still act in accordance with the new Code.

You can read more in our Grocery Supply Agreements Factsheet.

1. New clause prohibiting retaliation – clause 30

This is a new clause that specifically prohibits retailers from retaliating against suppliers for exercising their rights under the Code, getting in touch with the Commission or engaging with the dispute resolution scheme. Retaliation could take a range of forms, including:

• delisting the supplier’s groceries
• requiring the supplier to make excessive contributions towards promotional or marketing costs for the supplier’s groceries
• rejecting groceries from the supplier
• changing the location of the supplier’s groceries in store or online
• delaying restocking the supplier’s groceries in store or online
• reducing the volume of stock ordered from the supplier
• cancelling an order to the supplier
• varying, terminating, or electing not to renew a grocery supply agreement with the supplier.

2. Changes to payments for wastage – clause 14

This clause now prohibits retailers from charging suppliers for wastage incurred while groceries are in the RGR’s effective control. In this clause, payment includes payment in kind.

Previously retailers were able to charge suppliers for wastage if specific requirements were met. This has been removed from the clause.

3. Changes to address the practice of investment buying – clause 18

RGRs will no longer be able to order excess stock at a promotional price to retail at a higher price after the promotional period.

This clause now specifies that if the retailer sells groceries that are part of a supplier-funded promotion at a non-promotional price, the retailer must repay the supplier the portion of the promotional funding relating to those groceries.

4. New record keeping requirements for retailers – clauses 9, 15, 17

Record-keeping requirements encourage RGRs to comply with the Code and assist the Commission with related investigations.

These changes exist in clauses 9, 15 and 17 and are detailed below.

a) Record keeping requirements: clause 9 – Unilateral variations of agreement

Under this clause, retailers must not vary a grocery supply agreement without the consent of the supplier unless it meets the requirements set out under clause 9. Retailers must keep records of how it has met these requirements for 7 years and make them available to the Commission upon request.

b) Record keeping requirements: clause 15 – Payments as condition of being a supplier

Under this clause, retailers must not require a supplier to make any payment as a condition of stocking or listing groceries, unless the retailer meets the requirements listed in clause 15. Retailers must keep records of how it has met these requirements for 7 years and make them available to the Commission upon request. Retailers must provide a written explanation to the supplier as to why the retailer considers that these requirements are met.

c) Record keeping requirements: clause 17 – Funding promotions

Under this clause, the retailer must not directly or indirectly require a supplier to fund part or all of the costs of a promotion unless the retailer meets the requirements set out in clause 17. Under the new Code, the retailer must keep records of how it has met these requirements for 7 years and make them available to the Commission upon request. Suppliers are now able to request a written explanation from the retailer as to why it believes the requirements of clause 17 are satisfied by the retailer.

The record keeping requirements should not result in an unreasonable increase in administrative burden for RGRs or suppliers.

We will also continue to consider other issues raised through the review and other channels as part of our monitoring, compliance and enforcement work.

The penalties for the Grocery Supply Code 2025 including for new and changed provisions can be found in the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026open_in_new.

Our role as the grocery regulator is to monitor and enforce the Grocery Supply Code. We will continue to closely monitor compliance and take enforcement action where appropriate.

We strongly encourage grocery suppliers to continue to engage with the Commission on issues they are seeing in the sector. You can reach out directly to the grocery team at grocery.regulation@comcom.govt.nz, report a concern through the Commission website, or submit an anonymous complaint through the grocery Anonymous Reporting Tool.open_in_new