Foodstuffs’ grocers vote for ‘historic merger’

Tuesday, 4 June 2024

Foodstuffs members have voted to merge its two divisions into one.

The merger was first proposed in November 2023, with Tuesday’s vote meaning the proposal can go ahead.

CEO Chris Quin said the vote to merge was a great day for the co-op.

A proposed merger between Foodstuffs North and South Island divisions into one New Zealand co-op has received the support of the grocery store owners.

The merger was first proposed in November 2023, and now, on Tuesday, members, who are the co-ops’ shareholders voted in favour of a merger.

This means the proposal can go ahead, subject to Commerce Commission and High Court approval.

CEO-designate of the proposed national Foodstuffs co-op Chris Quin welcomed the result.

“This is a great day for our co-ops. New Zealanders want us to deliver more value and innovation. We’re up for this, and as one national co-op, we can do this faster and better,” Quin said.

“We have to challenge every aspect of our business model to be as efficient as we can, because our number one job is delivering great prices at the checkout. It’s the right time after the significant changes over the past four years to make sure we’re doing the best for New Zealanders.”

The two individual co-ops share brands, including PAK’nSAVE, New World, Four Square, and its own brand, Pams.

Quin said it has taken a lot of work to get to this point, but there is still more to be done with the Commerce Commission process still ongoing.

He added the merger would change how Foodstuffs is governed and how they support their stores.

“Importantly for customers, the merger won’t change the number of stores or distribution centres, their local grocer owners, our trusted brands, or the fact our 500+ stores are 100% proudly New Zealand owned, and all profits are returned to New Zealanders.

“The merger would see us operating as one national business, like most major New Zealand companies in a market of this size do. It’s more efficient, and it just makes sense,” Quin added.

Chair-designate Russell McKenzie, who’s a Christchurch supermarket owner-operator himself, says getting members’ support was significant.

“The merger is driven by an ambitious goal for the future – to become the best grocery co-op in the world, owned by the best local grocery retailers and wholesalers, delivering the best experience and value to New Zealanders. We're confident we can achieve that together.

“Our Members strongly support that goal, and agree that a merger is the best way we can keep serving our local communities for decades to come,” McKenzie said.

The Commerce Commission has refused to comment on the vote.