1 00:00:00,080 --> 00:00:03,440 Speaker 1: Onto another subject, The Commerce Commission fired another shot across 2 00:00:03,440 --> 00:00:07,440 Speaker 1: the supermarket youopoly bows. The ComCom says that the supermarkets 3 00:00:07,480 --> 00:00:10,720 Speaker 1: are charging suppliers for things like stocking shelves and this 4 00:00:10,760 --> 00:00:12,760 Speaker 1: has got to stop now. Matthew Lane is Night and 5 00:00:12,840 --> 00:00:15,480 Speaker 1: Day general manager. He's read the ComCom reporting is with us. 6 00:00:15,480 --> 00:00:18,360 Speaker 2: Now, how math you afternoon? Here? Is? 7 00:00:18,360 --> 00:00:20,600 Speaker 1: Is that what's going on and the supplies being charged 8 00:00:20,600 --> 00:00:21,520 Speaker 1: for stocking shelves. 9 00:00:23,360 --> 00:00:26,000 Speaker 2: There is certainly a practice that does happen in the 10 00:00:26,040 --> 00:00:29,200 Speaker 2: surf market industry, but what's most encouraging for us is 11 00:00:29,200 --> 00:00:32,760 Speaker 2: that the comcoms cracking down on the fact that other 12 00:00:32,880 --> 00:00:36,320 Speaker 2: retailers are being charged more for their wholesale than what 13 00:00:36,720 --> 00:00:39,760 Speaker 2: are the surfermarkets are actually retailing the same products for? 14 00:00:40,440 --> 00:00:40,680 Speaker 2: Is it? 15 00:00:40,760 --> 00:00:41,559 Speaker 1: Give me an example? 16 00:00:42,840 --> 00:00:45,800 Speaker 2: So example is if we buy a bag of flour 17 00:00:45,880 --> 00:00:48,280 Speaker 2: wholesale oft them could be three dollars for us to 18 00:00:48,320 --> 00:00:51,280 Speaker 2: buy for them, it's three dollars to buy as well, 19 00:00:51,320 --> 00:00:53,600 Speaker 2: but then the supply gives them back another dollar, so 20 00:00:53,680 --> 00:00:57,160 Speaker 2: the effect of cost prices two dollars whereas ours is 21 00:00:57,200 --> 00:00:57,840 Speaker 2: three dollars. 22 00:00:58,280 --> 00:01:00,920 Speaker 1: Why are they how does this rebate thing work? Why 23 00:01:00,960 --> 00:01:02,480 Speaker 1: would a supply give them a rebate. 24 00:01:03,720 --> 00:01:06,600 Speaker 2: It's to target the investment into the players with the 25 00:01:06,640 --> 00:01:09,600 Speaker 2: major dominance. So given the fact they've got volume in 26 00:01:09,600 --> 00:01:11,880 Speaker 2: the position in the market, they end up being looked 27 00:01:11,959 --> 00:01:15,160 Speaker 2: after a bit more. But then also the surf markets 28 00:01:15,319 --> 00:01:18,240 Speaker 2: probably demand it to make sure they can't lose market 29 00:01:18,319 --> 00:01:19,199 Speaker 2: share to any other. 30 00:01:19,120 --> 00:01:21,040 Speaker 1: Resail So does it give the serve the supply? It 31 00:01:21,040 --> 00:01:22,840 Speaker 1: gives them a rebate, maybe gives them prominence on the 32 00:01:22,840 --> 00:01:24,160 Speaker 1: shelf or something like that. 33 00:01:24,880 --> 00:01:27,080 Speaker 2: Could be, or even just reduce the cost price versus 34 00:01:27,080 --> 00:01:28,880 Speaker 2: what everyone else can buy if for in the market. 35 00:01:29,120 --> 00:01:32,200 Speaker 1: Okay, now what is the Commerce Commission going to do 36 00:01:32,240 --> 00:01:33,760 Speaker 1: about it? If this stuff doesn't stop? 37 00:01:35,319 --> 00:01:37,880 Speaker 2: So they have sent a shot across the bower to 38 00:01:37,959 --> 00:01:41,440 Speaker 2: the supermarkets. At the moment it's acknowledged they receive five 39 00:01:41,440 --> 00:01:46,000 Speaker 2: billion dollars in these rebates. That investment hasn't passed on 40 00:01:46,000 --> 00:01:49,200 Speaker 2: to other retailers trying to source those products. The surf 41 00:01:49,280 --> 00:01:52,640 Speaker 2: markets were given a clear mandate set up wholesale. They 42 00:01:52,640 --> 00:01:55,520 Speaker 2: have set it up, but it's not competitive and unfortunately 43 00:01:55,520 --> 00:01:57,800 Speaker 2: it's probably cheaper for me to go with the shop 44 00:01:57,840 --> 00:02:00,200 Speaker 2: and trolley around pattern save and monitors to pa what. 45 00:02:00,200 --> 00:02:02,400 Speaker 1: I'm trying to get to is that the Commers Comission's 46 00:02:02,400 --> 00:02:04,880 Speaker 1: doing nothing about it but talking right, it's just jaw boning. 47 00:02:06,280 --> 00:02:08,480 Speaker 1: How much of this jaw boning do we have to 48 00:02:08,480 --> 00:02:10,120 Speaker 1: sit through before they actually do something. 49 00:02:11,000 --> 00:02:13,440 Speaker 2: Yeah, we're seeing a light to see action. If we 50 00:02:13,440 --> 00:02:15,480 Speaker 2: could take a sledge hammer to it rather than taking 51 00:02:15,480 --> 00:02:18,720 Speaker 2: it step by step, I think that would certainly create momentum. 52 00:02:19,200 --> 00:02:21,640 Speaker 1: They've gone getting frustrated. 53 00:02:22,320 --> 00:02:26,040 Speaker 2: Absolutely frustrating. The rules are high, but I guess when 54 00:02:26,080 --> 00:02:28,040 Speaker 2: the market's been this way for twenty five years, you've 55 00:02:28,040 --> 00:02:31,200 Speaker 2: probably become a bit more accustomed to it. Look as 56 00:02:31,240 --> 00:02:34,400 Speaker 2: the strongest signals we've had that change is coming. We're 57 00:02:34,440 --> 00:02:37,040 Speaker 2: trusting if that change is coming. But you know, I 58 00:02:37,040 --> 00:02:40,560 Speaker 2: think there's the strongest signals so far that change will come. 59 00:02:41,080 --> 00:02:43,959 Speaker 2: The bulls in the surfmarket court to do it voluntarily, 60 00:02:44,720 --> 00:02:47,000 Speaker 2: and if not, once again, the Comms Commission will step down. 61 00:02:47,320 --> 00:02:50,000 Speaker 1: And when because we're getting signals that change is coming. 62 00:02:50,000 --> 00:02:51,680 Speaker 1: When that change comes, what does it look like. 63 00:02:53,200 --> 00:02:55,240 Speaker 2: So they've been given twelve months to pass on all 64 00:02:55,280 --> 00:02:58,519 Speaker 2: those promotional discounts to other retailers, so that's in a 65 00:02:58,520 --> 00:03:02,400 Speaker 2: lot of their prices as well. They're also stating that 66 00:03:02,440 --> 00:03:05,480 Speaker 2: the supermarkets have to provide their private labels through the 67 00:03:05,480 --> 00:03:07,560 Speaker 2: whole salth so we can get access to the cheapest 68 00:03:07,600 --> 00:03:10,680 Speaker 2: sugar in the market. The brand of ones are more expensive, 69 00:03:10,680 --> 00:03:12,600 Speaker 2: so if we can get access to their home brands, 70 00:03:12,720 --> 00:03:13,880 Speaker 2: we can then pass that sugar. 71 00:03:13,919 --> 00:03:16,040 Speaker 1: I think you must understanding my question, right. If we're 72 00:03:16,040 --> 00:03:18,880 Speaker 1: getting all of these signals that change is coming, and 73 00:03:18,919 --> 00:03:21,640 Speaker 1: the Commers, Commission all the government are going to implement change, 74 00:03:21,680 --> 00:03:22,960 Speaker 1: what does that change look like? 75 00:03:24,560 --> 00:03:28,560 Speaker 2: The change looks like effectively lower cost to the contribute. 76 00:03:28,240 --> 00:03:30,079 Speaker 1: But how do we get there? 77 00:03:31,120 --> 00:03:34,080 Speaker 2: How do we get it? It's a good question. I 78 00:03:34,120 --> 00:03:37,560 Speaker 2: think the pathway is out there. I don't know how 79 00:03:37,600 --> 00:03:38,400 Speaker 2: we get there. 80 00:03:39,720 --> 00:03:41,840 Speaker 1: This is what I'm starting to get really frustrated with this. 81 00:03:41,960 --> 00:03:43,680 Speaker 1: Are you not, like, how long have we been talking 82 00:03:43,720 --> 00:03:46,840 Speaker 1: about supermarkets? We were talking about supermarkets when Jacinda was 83 00:03:46,840 --> 00:03:49,160 Speaker 1: still in there, and we're still talking about supermarkets and 84 00:03:49,160 --> 00:03:49,960 Speaker 1: nothing's changed. 85 00:03:50,800 --> 00:03:52,920 Speaker 2: Yeah, that is correct. So I've spent about four years 86 00:03:53,520 --> 00:03:55,920 Speaker 2: and we're still in a similar possession to what we 87 00:03:55,920 --> 00:03:58,840 Speaker 2: were when we embarked on it. So I do she 88 00:03:59,080 --> 00:04:01,200 Speaker 2: frustration certainly frustrated as well. 89 00:04:01,520 --> 00:04:04,200 Speaker 1: Yeah, you're probably more frustrated than I am. Matthew, thank you. 90 00:04:04,280 --> 00:04:07,080 Speaker 1: I appreciate it. Matthew Lane, Night and Day General Manager. 91 00:04:07,280 --> 00:04:09,320 Speaker 1: I just worry, do you not worry? Well, I don't 92 00:04:09,360 --> 00:04:11,440 Speaker 1: worry that much, but I just I just think that 93 00:04:11,680 --> 00:04:15,000 Speaker 1: possibly the ComCom and the grocery Commissioner, and if Nikola 94 00:04:15,040 --> 00:04:17,839 Speaker 1: doesn't watch out, the Finance minister as well, are going 95 00:04:17,880 --> 00:04:19,599 Speaker 1: to turn into the boy who cried Wolf. You know 96 00:04:19,640 --> 00:04:21,120 Speaker 1: the ones who are like I'm yeah, you're get it, 97 00:04:21,240 --> 00:04:22,880 Speaker 1: or like the weak parent is like, don't do that, 98 00:04:23,000 --> 00:04:24,760 Speaker 1: or I'm going to take that away from you. Oh yeah, yeah, 99 00:04:24,760 --> 00:04:26,200 Speaker 1: don't do that. Don't do that, And all you get 100 00:04:26,279 --> 00:04:27,520 Speaker 1: is don't do that. I'm going to take it away 101 00:04:27,520 --> 00:04:29,560 Speaker 1: from you. But you never actually find out what the 102 00:04:29,560 --> 00:04:31,960 Speaker 1: punishment is. Feel like we're in that little holding pattern 103 00:04:32,000 --> 00:04:32,360 Speaker 1: at the moment. 104 00:04:33,120 --> 00:04:36,280 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 105 00:04:36,360 --> 00:04:39,400 Speaker 2: news talks it'd be from four pm weekdays, or follow 106 00:04:39,440 --> 00:04:41,159 Speaker 2: the podcast on iHeartRadio.