New Zealand First has unveiled an election policy aimed at ending the country’s supermarket duopoly, promising tougher regulation, stronger enforcement, and lower prices for shoppers.

Under the proposal, the party would introduce legislation splitting Foodstuffs into two nationwide cooperatives based on brand. One would house New World and Four Square, while the other would operate Pak’nSave. Both would then compete directly with Woolworths New Zealand.

The announcement comes as Woolworths and Foodstuffs together control more than 80 percent of the grocery market.

The Commerce Commission has previously estimated the supermarket giants earn around $1 million a day in excess profits.

NZ First said kiwi families were being forced to choose “between heating and eating” and pointed to the imbalance between what growers receive and what shoppers pay.

The party cited one example in which a grower was paid 60 cents per kilogram for peas that retail for as much as $5.79. It also blamed the current system for job losses and uncertainty at food producers such as McCain Foods and Heinz Wattie’s.

Alongside the structural break up, NZ First is proposing to boost the Commerce Commission with tougher penalties and faster investigations.

Fines for serious breaches would be lifted to match Australian settings, reaching up to $10 million, three times the commercial gain, or 10 percent of turnover.

The party also wants to overhaul the Grocery Commissioner role, which was established by Labour in 2023. Describing the current position as “toothless,” NZ First said it would grant the commissioner powers to investigate, make binding decisions, and impose penalties directly rather than issue warnings from the sidelines.

A third strand of the policy targets what NZ First calls the supermarket giants’ stranglehold over shelf access. A new framework for industry rules would be introduced under the Commerce Act 1986, allowing targeted action to fix competition problems without waiting for lengthy legislative change.

The party said the reforms would ensure local producers are no longer pushed out or squeezed off the shelf by a system that favours the biggest players.

“The days of easy profits and zero accountability for the supermarket giants need to end,” NZ First said, adding that “hardworking kiwis need real action to tackle the price of food at the supermarket.“​​​​​​​​​​​​​​​​