Commerce Commission Warns Woolworths Over Supermarket Product Delisting Tactics
By Lions Roar News Business & Consumer Desk
WELLINGTON, NEW ZEALAND (Thursday, January 22, 2026) — The Commerce Commission has officially warned Woolworths New Zealand for what it believes is a likely breach of the Grocery Industry Competition Act. The warning follows a comprehensive review of how major supermarkets remove products from their shelves, a process known as “delisting.”
The investigation examined whether the nation’s grocery giants—Woolworths, Foodstuffs North Island, and Foodstuffs South Island—are meeting their legal obligations under the Grocery Supply Code.
⚠️ The “End of the Road” for Small Suppliers
The Commerce Commission’s Head of Groceries, Dr. Alice Hume, highlighted the severe power imbalance in a market where three entities control roughly 82% of the grocery sector.
- Market Pressure: Hume noted that the threat of being delisted creates a significant “weight” on suppliers, often forcing them to accept unfavorable conditions just to maintain market access.
- Lack of Trust: The review found that a lack of transparency in how supermarkets make these decisions has damaged trust between producers and retailers.
- The Warning: While only a court can officially rule on a breach, the Commission issued a formal warning to Woolworths, stating that certain delisting processes likely violated the Act.
🛡️ Woolworths Responds: “Templates Updated”
Woolworths New Zealand has acknowledged the Commission’s concerns and stated it has already moved to rectify the issues identified during the probe.
In a statement provided to the media, Woolworths noted:
“The Commission expressed concerns about whether one of our template letters included specific language that was required under the code… We have since updated our template letter in light of the Commission’s views.”
The company emphasized its commitment to the Grocery Supply Code and stated that it aims to fix potential compliance issues as quickly as possible.
📅 Looking Ahead: The May 1 Code Update
A revised and strengthened Grocery Supply Code is set to come into force on May 1, 2026. This update is designed to further “level the playing field” by providing:
- Clearer Rights: Suppliers will have specific legal pathways to challenge delisting decisions.
- Greater Transparency: Supermarkets will be required to provide more detailed reasoning when removing products.
- Anonymous Reporting: Dr. Hume urged suppliers to report unfair treatment directly to the Commission or via their website’s anonymous reporting tool.
📊 NZ Grocery Power Structure (2026)
| Retailer Group | Estimated Market Share | Regulatory Status |
| Woolworths NZ | ~35-40% | Issued Formal Warning |
| Foodstuffs (N.I. & S.I.) | ~42-47% | Under Ongoing Review |
| Independent/Others | ~18% | N/A |
