1 00:00:00,040 --> 00:00:02,160 Speaker 1: Well, I hope you weren't expecting much. Because Nikola Willis 2 00:00:02,160 --> 00:00:04,880 Speaker 1: interrupted our Sunday to deliver another finger wagging for the 3 00:00:04,920 --> 00:00:07,200 Speaker 1: supermarket sector. We ended up with a six week request 4 00:00:07,280 --> 00:00:10,280 Speaker 1: for information and a threat again of breaking up the 5 00:00:10,280 --> 00:00:12,840 Speaker 1: current players. Food Staff's North Island boss Chris Quinn's back 6 00:00:12,880 --> 00:00:13,119 Speaker 1: with us. 7 00:00:13,160 --> 00:00:15,200 Speaker 2: Chris morning, Good morning Mike. 8 00:00:15,360 --> 00:00:18,480 Speaker 1: Is there any convincing from your industry's point of view 9 00:00:18,480 --> 00:00:20,400 Speaker 1: the government that they might be on the wrong path 10 00:00:20,480 --> 00:00:21,680 Speaker 1: or as this is a lost cause. 11 00:00:23,400 --> 00:00:26,439 Speaker 2: Look, we believe that we can be listened to. You know, 12 00:00:26,480 --> 00:00:28,600 Speaker 2: this announcement came out of the blue and came as 13 00:00:28,600 --> 00:00:31,040 Speaker 2: a real shock to the three hundred and fifty local 14 00:00:31,080 --> 00:00:34,240 Speaker 2: family grosser families that own the stores and the food 15 00:00:34,240 --> 00:00:36,560 Speaker 2: stuffs North Island Cooperative and many of them have worked 16 00:00:36,560 --> 00:00:39,440 Speaker 2: for many years to get their businesses and to be successful. 17 00:00:39,440 --> 00:00:42,160 Speaker 2: And you know the sort of question England has spoke 18 00:00:42,200 --> 00:00:44,040 Speaker 2: to a lot of them yesterday. You know, what is 19 00:00:44,080 --> 00:00:46,360 Speaker 2: the government tending to do? Are they intended to take 20 00:00:46,400 --> 00:00:50,720 Speaker 2: their business away? So we certainly will be constructively engaged 21 00:00:50,720 --> 00:00:53,479 Speaker 2: in this because it came as a real surprise. 22 00:00:54,240 --> 00:00:56,640 Speaker 1: What does she want to do? And do you believe 23 00:00:56,720 --> 00:00:58,920 Speaker 1: that she will actually break your industry up. 24 00:01:00,680 --> 00:01:03,520 Speaker 2: Look. My understanding from what we've seen yesterday is that 25 00:01:03,560 --> 00:01:06,080 Speaker 2: there is a desire to see competition improved for the 26 00:01:06,080 --> 00:01:10,360 Speaker 2: benefit of consumers, and there's been some definition put by 27 00:01:10,400 --> 00:01:13,320 Speaker 2: the Minister of Finance to what she believes that means 28 00:01:13,319 --> 00:01:15,800 Speaker 2: and what should be done. I guess the thing we 29 00:01:15,840 --> 00:01:17,959 Speaker 2: would point out is that the cost of food in 30 00:01:18,000 --> 00:01:20,600 Speaker 2: New Zealand, nineteen cents of every dollar is made up 31 00:01:20,640 --> 00:01:23,880 Speaker 2: of what we do, what the supermarkets do. The rest 32 00:01:23,959 --> 00:01:26,640 Speaker 2: is the cost of the goods and various other things. 33 00:01:26,680 --> 00:01:29,600 Speaker 2: And I think, you know, the focus on food price 34 00:01:29,640 --> 00:01:32,520 Speaker 2: for New Zealand household is critical and really important, and 35 00:01:32,560 --> 00:01:34,240 Speaker 2: I think it needs a good look at the whole 36 00:01:34,280 --> 00:01:36,960 Speaker 2: system to do that. The other thing we'd say is, 37 00:01:36,959 --> 00:01:39,360 Speaker 2: you know, since nineteen twenty two, the reason we've been 38 00:01:39,400 --> 00:01:42,520 Speaker 2: our cooperative that gathers up big in small stores together 39 00:01:43,200 --> 00:01:45,399 Speaker 2: is because you get a scale advantage and you lower 40 00:01:45,440 --> 00:01:48,120 Speaker 2: the cost for each store, particularly for our smaller stores 41 00:01:48,120 --> 00:01:50,800 Speaker 2: and regional locations. You know, it allows us to be 42 00:01:50,840 --> 00:01:53,800 Speaker 2: in places that probably wouldn't be affordable as a smaller 43 00:01:53,880 --> 00:01:57,200 Speaker 2: or single business because they can benefit from the scale 44 00:01:57,240 --> 00:01:59,680 Speaker 2: of the organization. In a pretty small country. 45 00:02:00,040 --> 00:02:01,920 Speaker 1: See the twenty four billion. She tripped herself up to 46 00:02:01,960 --> 00:02:03,920 Speaker 1: a degree. I thought she talked about a twenty four 47 00:02:03,960 --> 00:02:06,560 Speaker 1: billion dollar industry, which is more than the dairy and 48 00:02:06,600 --> 00:02:09,480 Speaker 1: the tourism sector put together, and she wants somebody to 49 00:02:09,480 --> 00:02:11,560 Speaker 1: come in at scale and take ten percent of that 50 00:02:11,639 --> 00:02:14,799 Speaker 1: in the marketplace. Does she not think that a two 51 00:02:14,880 --> 00:02:18,880 Speaker 1: billion dollars of business was going begging somebody somewhere would 52 00:02:18,919 --> 00:02:20,720 Speaker 1: have looked at that and gone, I'll have a piece 53 00:02:20,760 --> 00:02:23,160 Speaker 1: of that, thank you. Well. 54 00:02:23,200 --> 00:02:25,080 Speaker 2: I think one of the facts that has agreed is 55 00:02:25,080 --> 00:02:27,840 Speaker 2: it about fifteen percent and growing of the market's already 56 00:02:28,080 --> 00:02:31,520 Speaker 2: not in the hands of Wolworths or of the two cooperatives, 57 00:02:31,520 --> 00:02:34,280 Speaker 2: because there are three players today with the two cooperatives, 58 00:02:34,560 --> 00:02:39,000 Speaker 2: and that has been growing over time. And in a 59 00:02:39,000 --> 00:02:41,080 Speaker 2: country like New Zealand, with its cultural mix and its 60 00:02:41,120 --> 00:02:44,480 Speaker 2: size and diversity, it won't look like necessarily the same 61 00:02:44,520 --> 00:02:47,119 Speaker 2: as the existing players. There'll be new, innovative players doing 62 00:02:47,120 --> 00:02:49,160 Speaker 2: different things. And that's exactly the competition. 63 00:02:49,240 --> 00:02:52,400 Speaker 1: We see exactly the Seymour line that this is a 64 00:02:52,440 --> 00:02:55,000 Speaker 1: government breaking up businesses, and for a government that's also 65 00:02:55,040 --> 00:02:57,400 Speaker 1: looking to bring in money from the this is a 66 00:02:57,400 --> 00:02:59,080 Speaker 1: bad message isn't. It's a bad look. 67 00:03:00,960 --> 00:03:03,080 Speaker 2: Look, we're just focused on making sure that we're do 68 00:03:03,080 --> 00:03:05,760 Speaker 2: everything we can about value for New Zealanders and about 69 00:03:05,960 --> 00:03:08,880 Speaker 2: keeping the scale of our business efficient so that we 70 00:03:08,919 --> 00:03:12,400 Speaker 2: can do a great job of values. That's the focus 71 00:03:12,440 --> 00:03:14,359 Speaker 2: that we're trying to focus on. And look, it's been 72 00:03:14,400 --> 00:03:18,799 Speaker 2: five years of various studies and examinations. That takes a 73 00:03:18,840 --> 00:03:21,080 Speaker 2: lot of resource and a lot of tension off the 74 00:03:21,120 --> 00:03:23,000 Speaker 2: things that we'd really like to be doing for customers. 75 00:03:23,200 --> 00:03:26,079 Speaker 1: All Right, appreciate it, Chris Chris Quinn, who's the Foodstuff's 76 00:03:26,080 --> 00:03:26,919 Speaker 1: North Island CEO. 77 00:03:27,480 --> 00:03:30,360 Speaker 2: For more from the Mic Asking Breakfast, listen live to 78 00:03:30,480 --> 00:03:33,560 Speaker 2: news talks that'd be from six am weekdays, or follow 79 00:03:33,600 --> 00:03:35,160 Speaker 2: the podcast on iHeartRadio.