Foodstuffs says National’s plan to break up New World and Pak’nSave would increase food costs

Foodstuffs is promising to fight a National Party plan to break up its collective into two nationwide supermarket chains, saying it could increase food prices by making its stores less efficient.

National announced yesterday that it wanted to split up Foodstuffs if re-elected, forcing its New World and Four Square brands to break from Pak’nSave to create a third player to drive down grocery prices through competition.

Its plan, announced by party leader Christopher Luxon and finance spokeswoman Nicola Willis, would separate the Foodstuffs North Island and Foodstuffs South Island co-operatives.

Foodstuffs North Island chairman and Pak’nSave Tauranga owner Dean Waddell told Newstalk ZB’s Mike Hosking Breakfast that despite apparent broad political support for the plan, Foodstuffs would “have to fight this”.

“Our history is full of independent owners coming together to create economies of scale to be competitive for customers,” he said.