‘Protecting their patch’: Why small supermarkets are struggling

14 April, 2023

Interview by Spike Keith, adapted by Jack Cormack-Neto

Supie CEO, Sarah Balle, says that the strict duopoly Aotearoa's supermarkets hold is causing consumers' cost of living crisis to worsen. Photo: Canva.

Listen to the full interview

Supie, a recent entry into Aotearoa’s supermarket space, has alleged they are facing pushback from multiple suppliers over their low retail prices.

The online grocery delivery service, launched in 2021, was created to give consumers in Aotearoa better access to local produce at more affordable prices. 

However, Supie has alleged a number of its suppliers are concerned their prices are too competitive with the Countdown and Foodstuffs duopoly.

Supie CEO Sarah Balle told Spike Keith on 95bFM’s The Wire, that it was disappointing some of its suppliers requested an increase to their set retail prices.

“When we moved to a lower pricing strategy, we noticed a real uptick in the number of suppliers reaching out to us requesting we increase prices for consumers.” 

A government inquiry released in 2022 found that between the two largest supermarket companies, Woolworths and Foodstuffs, supermarkets are profiting an excess of $1 million a day.

Balle argued that these companies “want to protect their patch’’ and their duopoly has limited the growth of smaller companies such as Supie. 

This comes at a time when food prices have reached an all-time high. The annual food price index from Stats NZ found that fruit and veg prices increased by 23% from November 2021 to November 2022.

Balle stressed that it is vital for consumers, especially in a cost of living crisis, to get a fair price at the checkout.

Supie has also asked the Food and Grocery Council to remind suppliers about their obligations.