Grocery Industry Dispute Resolution Scheme
This scheme is designed to quickly and fairly resolve disputes about the supply of groceries.
Suppliers to and Wholesale Customers of Regulated Grocery Retailers (the RGRs) can refer disputes about the supply of groceries to the scheme, which is funded by the RGRs.
The scheme is an out-of-court process that can result in:
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a binding agreement between the parties reached in mediation or
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a binding decision from an adjudicator in adjudication.
It is set up under the Grocery Industry Competition Act 2023 (the Act), the Regulations under the Act, and (from 1 May 2026) the Grocery Supply Code 2025 (the Grocery Supply Code), and is governed by the Scheme Rules.
In a landmark decision, the Grocery Industry Dispute Resolution Scheme has released its first determination under the Grocery Industry Competition Act 2023 (GICA) .
The case provides practical insight into how the scheme and Grocery Supply Code operate in practice — offering clear guidance on good faith, reasonable notice, and genuine commercial reasons in supplier–retailer relationships.
Click here to view GICA and the Dispute Resolution Scheme in action
Scheme overview
What Disputes can be referred to the Scheme?
Dispute resolution under the Scheme
Read how NZDRC will administer the Grocery Industry Dispute Resolution Scheme.
What does it cost, and who pays?
How do I refer a Dispute to the Scheme?
Find out how to start the process.
Definitions and FAQs
Explore our FAQs section for quick insights and to find answers to common questions.
Scheme Rules
Access the Scheme rules for mediation and adjudication.
Fees and Expenses
Find out more about the cost associated with the Scheme.
Mediation process
Adjudication process
What Disputes can be referred to the Scheme?
Disputes where:
- the claimed amount is less than $5 million (or no amount is claimed); and
- the dispute arises from the performance or non-performance by a Regulated Grocery Retailer of provisions under:
- the Act and the Grocery Supply Code regarding Suppliers or
- Part 3 of the Act regarding the wholesale supply of Groceries to Wholesale Customers.
A dispute cannot be referred to the Scheme if it does not meet these criteria or if the dispute has been determined in a court or tribunal or by binding agreement between the parties.
Dispute resolution under the Scheme
The Scheme provides two types of dispute resolution processes: Mediation and Adjudication.
When a Claimant submits an Application for Dispute Resolution, Mediation is offered as the first option. However, if either the Claimant or the Respondent do not agree to Mediation, NZDRC will appoint an Adjudicator to resolve the Dispute.
What does it cost, and who pays?
The Scheme is funded by the Regulated Grocery Retailers, to ensure it is accessible to everyone entitled to use it. The RGRs’ funding covers the mediators’ and adjudicators’ fees and the Scheme’s administrative costs.
Parties must pay their own legal fees and other costs and expenses unless they agree otherwise in mediation or the adjudicator determines otherwise.
There is a fixed-fee Adjudication process for claims that are both lower value (<$100,000) and lower complexity (≤ 3 issues). See the Adjudication section of the Dispute Resolution Costs page.
How do I refer a Dispute to the Scheme?
First, download and complete the Notice of Dispute.
Then serve the Notice of Dispute on the Regulated Grocery Retailer.
Then, you can apply to the Scheme by filling out the online application form and providing supporting documents. You must do this within 5 working days of serving the Notice of Dispute.
Definitions and FAQs
Find quick insights and helpful information on a variety of topics related to the Grocery Industry Dispute Resolution Scheme
Who are the Regulated Grocery Retailers (RGRs)?
- Foodstuffs North Island Limited and Foodstuffs South Island Limited (including Pak ‘n Save, New World and Four Square)
- Woolworths New Zealand Limited (including Countdown, First Choice and Super Value)
- Their related or associated parties, including franchisees.
Who are Suppliers?
Anyone who is or is taking active steps towards supplying Groceries to a Regulated Grocery Retailer.
It includes former suppliers if the last supply was made or the RGR terminated the supply agreement within the last 3 months.
Who are Wholesale Customers?
Anyone who is or wants to purchase Groceries from a Regulated Grocery Retailer for the supply of those Groceries directly or indirectly at retail to consumers.
It includes former wholesale customers if the last supply was made or the RGR terminated the wholesale supply agreement within the last 3 months.
What items are Groceries?
Groceries are defined in the Act to mean goods in any of the following product categories:
- fresh produce (for example, fruit, vegetables, and mushrooms)
- meat, seafood, or meat substitutes
- dairy products (for example, milk, cheese, and butter)
- bakery products
- chilled or frozen food
- pantry goods or dry goods (for example, eggs)
- manufacturer-packaged food
- non-alcoholic drinks
- personal care products (for example, toiletries, first aid, and medicine other than prescription medicine)
- household consumables (for example, cleaning products, laundry products, and stationery products)
- pet care products (for example, pet food).
Alcoholic drinks are not included.
What is Mediation?
The parties meet with a neutral, independent person (the mediator) who tries to help them to resolve the dispute.
The outcome of mediation is binding on the parties only if they enter into a binding agreement, usually called a ‘settlement agreement’.
The process is private and confidential and takes place in accordance with the Scheme rules (which are issued under Subpart 5 of Part 4 of the Act). For more information on mediation, see:
What is Adjudication?
The parties present their arguments and evidence to a neutral, independent person (the adjudicator). The adjudicator decides the outcome of the dispute for the parties, and the outcome is binding on them.
The process is private and confidential and takes place in accordance with the Scheme rules (which are issued under Subpart 5 of Part 4 of the Act). For more information on adjudication, see:
Who can use the Grocery Industry Dispute Resolution Scheme?
Only Suppliers, Wholesale Customers and Regulated Grocery Retailers can use the Scheme. The Scheme does not cater to consumers.
Only a Supplier or Wholesale Customer may initiate a dispute resolution process (referred to in the Scheme Rules as the Claimant).
Regulated Grocery Retailers cannot refer disputes to the Scheme. They may only respond to the claims raised by Suppliers or Wholesale Customers. They are referred to in the Rules as the Respondent. While they may not bring claims against Suppliers or Wholesale Customers, they may claim set-off or abatement up to the proved value of the Claim.
Please see the Rules for definitions of, among other things: Dispute, Supplier, Wholesale Customer and Regulated Grocery Retailer.
Can a Regulated Grocery Retailer refuse to participate in a dispute resolution process?
No – a Regulated Grocery Retailer must comply with the Rules of the Approved Dispute Resolution Scheme.
If a Regulated Grocery Retailer fails to comply, NZDRC may apply to the District Court to obtain an order requiring the Regulated Grocery Retailer to comply.
If a Party fails to participate or fails to comply with a direction or order made by an Adjudicator, an Adjudicator may draw any reasonable inferences they think fit from the failure and proceed to determine the claim based on the information available to them.
What kind of Disputes may be dealt with under the Scheme?
Only Disputes arising from the Grocery Supply Code Requirements, the wholesale supply of groceries requirements under Part 3 of the Act, or Disputes that fall into a category of eligible disputes defined by Regulations made under section 154 of the Act, where the claimed amount is less than $5M (or no amount is claimed), are eligible for referral to the Scheme.
The Dispute should not have already been resolved by court or tribunal proceedings or by a binding agreement between the Parties before referring it to the Scheme.
The Minister and Governor-General have the authority to prescribe further eligible classes of Disputes that may be referred to the Scheme.
How will disputes be resolved and how is that decided?
The Scheme offers two ways to resolve disputes: Mediation and Adjudication. Under the Grocery Dispute Resolution Scheme Rules (the Scheme Rules), when a Claimant (Supplier or Wholesale Customer) applies for dispute resolution, they will be offered Mediation first. If the Claimant or the Respondent do not agree to Mediation, NZDRC will appoint an adjudicator to determine the dispute.
A Dispute can be subject to Mediation or Adjudication even if other court or tribunal proceedings are afoot.
Parties may choose a tikanga-based Māori cultural support framework for the resolution of Disputes under the Scheme using Māori beliefs, principles, values, and practices that derive from traditional knowledge (mātauranga Māori) for improved outcomes for parties.
What can an Adjudicator decide?
- If an amount of money is claimed by the Claimant, the Adjudicator must determine:
- the Respondent’s liability to pay that money (if any), including any conditions on that liability;
- the amount payable (or conditionally payable);
- the date on which the payment must be made or becomes payable; and
- the conditions on which it becomes payable.
- Interest: The Adjudicator can award interest in relation to the recovery of money.
- Costs: The Adjudicator can determine the allocation of costs related to the Adjudication process.
- Procedure: The Adjudicator has wide discretion to determine how the Adjudication is conducted, including the timetable, procedure, and whether there will be any conferences, visits, inspections or hearings. However, the Adjudicator must comply with the principles of natural justice.
- Jurisdiction: The Adjudicator has the authority to determine their jurisdiction to address the Dispute in accordance with the Scheme Rules.
- Necessary Matters: The Adjudicator can address any additional matters necessary to fulfil their role under the Scheme Rules.
Will I have to pay for Mediation or Adjudication?
To ensure the Scheme is accessible to all persons entitled to use the Scheme, every Regulated Grocery Retailer must contribute to the Scheme Funding Costs to fund the operation and delivery of the Scheme.
There are two types of costs incurred in relation to dispute resolution under the Scheme: the Mediator’s or Adjudicator’s Fee and the Parties’ own costs and expenses (for example, legal or expert fees).
For Mediation, unless the Parties have agreed otherwise, the Respondent will pay the Mediator’s Fee, and the Parties will pay their own costs and expenses.
For Adjudication, the Respondent will pay the Adjudicator’s Fee and the Parties will pay their own costs and expenses. However, an Adjudicator may make a different determination about the payment of their Fee and Party costs if, for example, they consider a claim frivolous, vexatious or without substantial merit, or a Party acted in a contemptuous or improper manner during the Adjudication.
Are the outcomes enforceable?
Yes.
If the Parties reach agreement on any or all matters in dispute in Mediation, that agreement is formally recorded in a legally binding Settlement Agreement signed by all Parties. A Settlement Agreement can be enforced by a Party or NZDRC applying to the District Court.
An Adjudicator’s Determination is binding on the Parties unless and until the Dispute is finally determined by legal proceedings in a court or subsequent agreement between the Parties. A Determination is a debt due and owing. If a Party fails to pay an amount due under the determination by the Relevant Date, the Party who is owed the money may recover the unpaid portion of the amount as a debt due in any court of competent jurisdiction, as well as the reasonable costs and expenses of recovery.
Can an Adjudicator's Determination be appealed?
Yes, but an appeal may only be brought only on a question of law.
How do I start the dispute resolution process?
Dispute resolution can be started at any time by the Claimant serving a notice of its intention to commence dispute resolution under the Scheme on the other Parties (a Notice of Dispute).
The Notice of Dispute must be in the form published on this NZDRC Website at the time the Notice of Dispute is served. It must contain the following information:
- a statement that the Claimant requires the dispute to be referred to dispute resolution under the Scheme;
- if the dispute is in relation to the Grocery Supply Code, the requirement(s) of the Grocery Supply Code claimed to have been breached;
- a brief description of the nature of the dispute;
- the names and contact details of the parties and (if known) their representatives, including details for electronic communication (if available);
- the contract, relationship or basis of the claim that the dispute relates to; and
- an explanation of the compensation, relief or remedy that is sought.
An Application for Dispute Resolution under the Scheme must be given to NZDRC within five Working Days of the Notice of Dispute being served. This period of time can be extended by written agreement between the Parties.
Under the Rules, when a Claimant makes an Application for Dispute Resolution, they will be offered Mediation. If the Claimant or the Respondent do not agree to Mediation, NZDRC will appoint an Adjudicator to determine the Dispute.
What is the background to the Scheme?
On 8 March 2022, the Commerce Commission (Commission) published its final report on the market study into the retail grocery sector in New Zealand. The report found that competition in the retail grocery sector was not working well for consumers and recommended changes to increase competition and help improve the price, quality and range of groceries available to New Zealanders. One of the report’s recommendations was that a dispute resolution mechanism be provided that is independent, affordable, timely, confidential, and informed by specialist expertise.
The Grocery Industry Competition Act 2023 (the Act) came into force on 28 September 2023 pursuant to the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023. For the Act to function as intended it established a framework for a Dispute Resolution Scheme to deal with disputes between Regulated Grocery Retailers and their Suppliers or Wholesale Customers.
On 11 October 2023, the (then) Minister of Commerce and Consumer Affairs approved the New Zealand Dispute Resolution Centre (NZDRC) to be the Provider of the Grocery Dispute Resolution Scheme (the Scheme) under the Act.
The Grocery Supply Code 2023 came into full force on 28 March 2024.
On 4 September 2024 the Minister of Commerce and Consumer Affairs approved the Scheme Rules.
Where can I find more information?
See Mediation Process or Adjudication Process
See our Definitions and FAQ section above
Ask us: registrar@nzdrc.co.nz or contact us
Click on our useful links or browse this website
Consult your lawyer (we cannot provide legal advice – the information on this website is general guidance only).
Useful links
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Commerce Commission Website
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Commerce Commission Supplier Fact Sheet
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Commerce Commission Supplier Checklist
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Commerce Commission Information for Wholesale Customers
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Grocery Supply Agreement Factsheet – May 2026
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Grocery supply code guidance – Clause 11 Transport or logistics services – 4 March 2026
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Annual Report FY26
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Annual Report FY25
Take the first step towards resolving your dispute today
If you are a Supplier or a Wholesale Customer of a Regulated Grocery Retailer (RGR) and you have a dispute with that RGR concerning the Grocery Supply Code requirements or the wholesale supply of groceries requirements under Part 3 of the Act and the amount claimed is less than $5M (or no amount is claimed), you are entitled to refer that dispute to the Grocery Industry Dispute Resolution Scheme (Scheme).
NZDRC has more than 30 years’ experience designing and delivering private dispute resolution services in Aotearoa, New Zealand. Contact us today to find out more about how we can help you or your clients.
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