FSSI Wholesale Access
Information for Suppliers:
Under the Grocery Industry Competition Act (the Act) Foodstuffs South Island (FSSI) is obligated to supply groceries wholesale to businesses outside of the cooperative who wish to purchase the same for supply at retail.
Accordingly, suppliers are required to indicate if they would like to opt in or opt out of the FSSI wholesale supply offering for non-member wholesale customers. By choosing to opt in, you are agreeing we can supply products that you supply through our Distribution Centres to wholesale customers. This does not include direct to store arrangements.
The following information will help you make an informed decision about whether you want to opt into or out of this wholesale arrangement.
The FSSI Wholesale Supply Offering
The intent of the Act is to:
- Make it easier for new retailers to enter the grocery market.
- Increase competition and productivity in the grocery industry.
- Pass on the benefits of robust competition to consumers.
The Act also allows the Commerce Commission to monitor and further regulate the grocery sector.
Implications for Suppliers
Suppliers can choose to opt out of the FSSI wholesale supply arrangement.
If you choose to opt out:
- There are no negative ramifications. For those that choose to opt out nothing will change. You will continue to supply product that will only be accessible to our members (i.e FSSI member stores).
If you choose to opt in:
- We expect you to opt in fully. This means that you cannot choose to supply some customers and not others and – as a standard – we expect that you will allow FSSI to make available all of your products that are supplied through the FSSI Distribution Centres to non-member wholesale customers.
- We cannot guarantee any lift in sales or profitability. Additionally, we are unable to provide you with any reporting about purchases of your products by non-member wholesale customers.
- Any other trading relationships between you and non-member wholesale customers will NOT be hindered or obstructed. This means that you can set up and maintain supplier relationships with non-member wholesale customers independently of the FSSI wholesale supply arrangement.
- Any Trade Terms (e.g. Invoice Payment Discounts, Scale Purchasing Discounts) will be passed onto the non-member wholesale customer.
- However, Trade Spend – that is money used to fund promotions - will not be passed onto any non-member wholesale customers. Any trade spend will need to be negotiated and applied outside of the FSSI arrangement, directly between you and the non-member wholesale customer.
Changing your Decision
You can change your decision to opt in or out as the case maybe, by notifying FSSI through SupplierResponse.WholesaleAccess@foodstuffs-si.co.nz. Please note, however, the supplier list is fixed for an initial set period of six months. You may opt out of this Agreement at any time after the Minimum Term, on 3 months’ notice in writing to us, in the form required by us (Opt-Out Notice) in the link below;
FSSI Wholesale Access Opt in/Out Notice for existing Suppliers
There are a few other points to note about the FSSI wholesale supply arrangement:
- Products that are supplied direct to store are excluded from this arrangement. If you only supply direct to store, you do not need to make an opt in / opt out decision .
- The FSSI wholesale supply arrangement specifically excludes home brand (e.g. Pams) products. If you supply products other than home brand, you can still make an opt in / opt out decision.