Foodstuffs NZ says the key driver of food prices comes down to “the fundamentals of supply and demand”, after a recent Stuff NZ article claimed that customers of New World Alexandra pay the third highest amount for 13 items in New Zealand.

The Central App asked Foodstuffs, the parent company of New World supermarkets, why prices vary in different parts of New Zealand.

“Comparing prices of individual products and brands won’t give a fair comparison of what’s going on with food prices and we’d recommend looking at Stats NZ’s food price inflation basket,” Foodstuffs spokesperson Emma Wooster said.

“[Recently] we shared an update on food price increases and how our prices to customers compare and are proud that we’ve kept our retail increase below food price increases for 13 months.”

She said Foodstuffs’ teams were focussed on doing all they can to keep prices low for customers, including “running our co-ops as efficiently as we can and buying well”. 

Foodstuffs South Island and Foodstuffs North Island are separate co-operatives; their respective support centre merchandise teams manage pricing and promotions separately, with the exception of agreed national promotions. 

New World Alexandra. PHOTO: The Central App 

Foodstuffs NZ told the Central App there is no central buying for ‘Foodstuffs’ so the terms and conditions for each supplier relationship will not be the same for both co-ops. 

“Prices and promotions can therefore vary between the PAK’nSAVE, New World, and Four Square brands in each island.

“In addition, every store is locally owned and operated and has some flexibility to tailor their promotions to benefit and suit their community needs and tastes.”

Individual products may differ in price because the owner operator may choose to invest in a particular brand/supplier. 

Emma said the price of fresh produce is dynamic with many factors influencing the overall cost, like weather, seasonality and availability. 

“The key driver of price tends to come down to the fundamentals of supply and demand. Our produce teams have good relationships with our growers and this is certainly the case for New World Alexandra, with a lot of stone fruit and pip fruit being grown in the region.” 

Emma recommended that for consumers to get “the best bang for their buck” they shop for what’s in season and in abundance, making the most of the specials on offer, comparing unit pricing, and looking at private label brands like Pams and Value.